On July 1, 2020, Friedman Inc. invested $720,000 in a mine estimated to have 900,000 tons of
Question:
On July 1, 2020, 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 2020, 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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Step by Step Answer:
a Dec 31 Inventory 80000 Accumulated Depletion 100000 X 80 80000 Cost a 720000 Units estimat...View the full answer
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Related Book For 
Accounting Principles
ISBN: 978-1119411482
13th edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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