Cementing services..10,000

Casing crews.12,000

Roustabout labor..16,000

Hauiling and transportation..15,000

Production casing.72,000

Tank battery.22,000

Lines and connections..11,000

Pumping unit motor and accessories..100,000

Casinghead and connections13,000

Tubing..17,000

Separating and treating equipment14,200

Measuring equipment.600

Downhole pump and rods.11,200

Required:

a. Classify the costs in b into IDC and L&WE.

b. Record the above transaction assuming that the well was successful.

c. Record the above transaction assuming that the well was dry if the Company paid cost of $70,000 to plug and abandoned the hole.

Hint: to save your time, you can record the IDC and L&WE in total not for each cost.