On July 1, 2022, Friedman Inc. invested $720,000 in a mine estimated to have 900,000 tons of

Question:

On July 1, 2022, Friedman Inc. invested $720,000 in a mine estimated to have 900,000 tons of ore of uniform grade. During the last 6 months of 2022, 100,000 tons of ore were mined.

Instructions

a. Prepare the journal entry to record depletion.

b. Assume that the 100,000 tons of ore were mined, but only 80,000 units were sold. How are the costs applicable to the 20,000 unsold units reported?

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Financial Accounting

ISBN: 9781119594598

11th Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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Question Posted: Oct 21, 2020 08:22 AM

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On July 1, 2022, Friedman Inc. invested $720,000 in a mine estimated to have 900,000 tons of

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a Dec 31 Inventory 80000 Accumulated Depletion 100000 x 80 80000 Cost a 7200...View the full answer

Financial Accounting

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