On July 1. 2006, Sutton Inc. invested $480,000 in a mine estimated to have 800,000 tons of
Question:
On July 1. 2006, Sutton Inc. invested $480,000 in a mine estimated to have 800,000 tons of ore of uniform grade. During the last 6 months of 2006, 100.000 tons of ore were mined and sold.
Instructions
(a) Prepare the journal entry to record depletion expense.
(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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Related Book For
Financial Accounting Text Only
ISBN: 9780006575405
5th Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel
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