how are the costs applicable to the 20 000 unsold units reported 617352
Aug 29, 2021 | Uncategorized
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On July 1, 2015, Friedman Inc. invested $720,000 in a mine estimated to have 900,000 tons of ore of uniform grade. During the last 6 months of 2015, 100,000 tons of ore were mined and sold.
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Calculate depletion cost per unit. (Round answer to 2 decimal places, e.g. 0.50.)
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$ |
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SHOW LIST OF ACCOUNTS
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LINK TO TEXT
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Prepare the journal entry to record depletion expense. (Round answer to 0 decimal places, e.g. 2,125. If no entry is required, select “No entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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Date
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Account Titles and Explanation
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Debit
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Credit
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Dec. 31
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SHOW LIST OF ACCOUNTS
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LINK TO TEXT
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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?
| The costs pertaining to the unsold units are reported in current liabilitieslong-term liabilitiescurrent assetslong-term investmentsstockholders’ equity as part of inventoryaccounts receivablecashaccounts payableprepaid expenses. |
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