1. **Problem Statement:** Calculate the average depletion cost per unit and prepare a depletion schedule. 2. **Silver Mining Inc.** 1. Cost = 80,000,000 + 15,000,000 = P95,000,000 2. Residual value = P30,000,000 3. Total extractable silver = 180,000 ounces 4. Depletable cost = Cost - Residual value = 95,000,000 - 30,000,000 = P65,000,000 5. Average depletion cost per ounce = \$\frac{65,000,000}{180,000} = 361.11\$ per ounce 6. Depletion schedule using extracted quantities: Year 1: 27,000 ounces $\rightarrow$ Depletion = 27,000 \times 361.11 = P9,750,000 Year 2: 32,000 ounces $\rightarrow$ Depletion = 32,000 \times 361.11 = P11,555,520 Year 3: 41,000 ounces $\rightarrow$ Depletion = 41,000 \times 361.11 = P14,806,710 Year 4: 53,000 ounces $\rightarrow$ Depletion = 53,000 \times 361.11 = P19,138,830 3. **WSS Lumber Corporation:** 1. Cost = P150,000,000 + P20,000,000 = P170,000,000 2. Residual value = P45,000,000 3. Depletable cost = 170,000,000 - 45,000,000 = P125,000,000 4. Total estimated board feet = 5,000,000 5. Average depletion cost per board foot = \$\frac{125,000,000}{5,000,000} = 25\$ per board foot 6. Depletion cost for 630,000 board feet cut in year 4 = 630,000 \times 25 = P15,750,000 **Final answers:** - Silver Mining average depletion cost per ounce: P361.11 - Silver Mining depletion schedule for 4 years: Year 1 - P9,750,000; Year 2 - P11,555,520; Year 3 - P14,806,710; Year 4 - P19,138,830 - Lumber Corporation average depletion cost per board foot: P25 - Lumber Corporation depletion cost for year 4: P15,750,000