Compute the depletion cost per ton. Round your answer to three decimal places. Compute the total cost of the inventory at December 31, 2019. Compute the total cost of goods sold for 2019.

Q: On January 1, 2018, Nickel Co. purchased a land for P12,000,000. The company expected to extract…

A: Year 2018 Purchase price of land = P12,000,000 Expected minerals to be extracted = 2,000,000…

Q: Your client, Hazelton Mining, recently entered into an agreement to obtain the rights to operate a…

A: Accretion  The gradual growth of assets and revenues as a result of industry expansion, internal…

Q: On January 1, 2021, the Allegheny Corporation purchased equipment for $187,000. The estimated…

A: GIVEN   On January 1, 2021, the Allegheny Corporation purchased equipment for $187,000 The estimated…

Q: e Fairy Company purchased a site for limestone quarry for P 100,000 on January 2,2020. It estimates…

A: a) The depletion cost per ton.   Cost of quarry = P100,000 Asset retirement obligation value =…

Q: On January 2, 2019, Whistler Company purchased land for $530,000, from which it is estimated that…

A: The cost of extracting natural resources from the earth, such as wood, minerals, and oil, is…

Q: In 2020. XYZ Company paid P4,000.000 to purchase land containing a total estimated 160.000 tons of…

A: Depletion can be defined as a reduction in the value of assets due to extraction of the natural…

Q: In 2018, IRIS Company paid ₱4,000,000 to purchase land containing a total estimated 160,000 tons of…

A: Given in the question: Value of land at beginning 2018 = ₱4,000,000 Salvage value = ₱800,000 Total…

Q: At the beginning of 2021, Terra Lumber Company purchased a timber tract from Boise Cantor for…

A: Formulas: Depletion per feet (units-of-production method) = (Cost of timber tract - residual value)…

Q: in 2020, ABC Company paid P4,000,000 to purchase land containing a total estimated 160,000 tons of…

A: Depletion refers to the allocation or expense of extracting natural resources from the surface of…

Q: On April 17, 2021, the Loadstone Mining Company purchased the rights to a coal mine. The purchase…

A: DepletionDepletion is an accrual accounting technique used to allocate the cost of extracting…

Q: In 2018, IRIS Company paid ₱4,000,000 to purchase land containing a total estimated 160,000 tons of…

A: a) Depletion Expenses to charge to Cost of Sales in 2020: Year 2019: Cost of the land: ₱4,000,000…

Q: On January​ 1, 2024, Tyson Manufacturing Company purchased a machine for $40,800,000. ​Tyson's…

A: Units-of-production method is one of method used to calculate depreciation expense, this…

Q: On January 1, 2019, Barbosa Company purchased a coal mining site for $2,000,000. Under the terms of…

A: The cost of the asset purchased includes the cost of purchase, transportation cost, development…

Q: On January 2, 2019, Whistler Company purchased land for $480,000, from which it is estimated that…

A: Depletion refers to the measure which is linked with the depletion amount of the extraction of the…

Q: In 2020, Tableta Company paid P4,000,000 to purchase a land containing a total estimated 160,000…

A: Under straight line method, Depreciation expense for equipment can be calculated as: = (Cost -…

Q: On July 4, 2020, ZY Company purchased the mineral rights to a granite deposit for 2,400,000. It is…

A: The depletion expense is charged on minerals with extraction and minerals sold during the period.

Q: On January 2, 2019, Whistler Company purchased land for $530,000, from which it is estimated that…

A: Depletion expense allows an owner or the extractor to charge the cost of reserves on the basis of…

Q: On January 1, 2019, a company completed construction of a nuclear power plant. The total cost of the…

A: Decommissioning liabilities- It means any costs, charges, expenses, liabilities and obligations…

Q: On January 2, 2018, ABC Company purchased land for ₱450,000, from which it estimated that 400,000…

A: Cost of Sales : It is the amount of cost that made the goods available for sale which typically will…

Q: On January 2, 2019, Whistler Company purchased land for $450,000, from which it is estimated that…

A: Depletion base includes Purchase cost development cost PV of anticipated restoration cost less:…

Q: On January 2, 2019, Whistler Company purchased land for $450,000, from which it is estimated that…

A: 1) Calculation of Depletion cost  per Ton:

Q: In March 2020, L&P Corp., a mining and construction company, purchased for $5,600,000 a mine…

A: Wasting assets: These are the assets which will have only a limited useful life and the value of…

Q: On January 2, 2019, Whistler Company purchased land for $450,000, from which it is estimated that…

A: Depletion in accounting refers to the technique used in allocating or assigning the cost of…

Q: Sunny Company paid 4,000,000 for property containing natural resources of 2,500,000 tons of ore. The…

A: Natural resources are gifts of nature without which survival is impossible. In order to fulfill the…

Q: In 2018, IRIS Company paid ₱4,000,000 to purchase land containing a total estimated 160,000 tons of…

A: The questions are multiple choice questions Required  Choose the Correct Option.

Q: On July 4, 2020, Wyoming Mining Company purchased the mineral rights to a granite deposit for…

A: Assets used over the years will face a depreciation each year which refers to the reduction in the…

Q: Alcide Mining Company purchased land on February 1, 2020, at a cost of $1,190,000. It estimated that…

A: a. Compute the per unit material cost.

Q: Nash Mining Company purchased land on February 1, 2020, at a cost of $ 914,300. It estimated that a…

A:

Q: On January 1, 2021, a business paid $6.400,000 for land with mineral deposits. Over the following…

A: The process of defining, assessing, and reporting transactions to regulatory authorities, tax…

Q: On July 1, 2019, Amplex Company purchased a coal mine for $2 million. The estimated capacity of the…

A: The answer is stated below:

Q: In 2018, DAISY Company paid ₱4,000,000 to purchase land containing a total estimated 160,000 tons of…

A: Depletion is defined as the technique of accrual accounting which is used for assigning the…

Q: Oil Products Company purchases an oil tanker depot on January 1, 2020, at a cost of $2,400,000. Oil…

A: Journal entry: Journal entry is the book of original entry where first transactions are recorded in…

Q: On January 2, 2019, Whistler Company purchased land for $490,000, from which it is estimated that…

A: 2019 unit depletion rate = [490,000 + 55,000 - 33,000 ] / 420,000 = 1.22 per ton 2021 unit depletion…

Q: On January 2, 2018, ABC Company purchased land for ₱450,000, from which it estimated that 400,000…

A: SOLUTION- DEPLETION IS A METHOD FOR ALLOCATING THE EXPENSE OF HARVESTING NATURAL PRODUCTS FROM EARTH…

Q: OH Corporation in 2017 paid ₱24,096,560 for a property with natural resources estimated at 1,025,600…

A: The depletion expense is charged on natural resources as reduction in value with the passage of…

Q: On May, 1, 2020, Star Mines Inc. purchased an ore mine for $2,400,000 to access an estimated…

A: Solution: The ore mine should be recorded at = Purchase cost of mine + Development cost + Present…

Q: In 2018, IRIS Company paid ₱4,000,000 to purchase land containing a total estimated 160,000 tons of…

A: Given information: Cost = ₱4,000,000 Residual value = ₱800,000 Expected tons to be extracted =…

Q: In 2018, DAISY Company paid ₱4,000,000 to purchase land containing a total estimated 160,000 tons of…

A: Formula: Depletion per Ton = ( Cost of land - salvage value ) / Estimated tons

Q: ord Company purchased a machine on January 2, 2019, for $70,000. The machine had an expected…

A: Depreciation: Depreciation is a method that reallocates the cost of a tangible asset over its useful…

Q: On January 1, 2019, Barbosa Company purchased a coal mining site for $2,000,000. Under the terms of…

A: Assets: Assets are those items that provide value for money and future economic benefit for an…

Q: On January 1, 2018, Nickel Co. purchased a land for P12,000,000. The company expected to extract…

A: Cost of land = $12,000,000 Expected extraction = 2,000,000 Time = 20 years Capacity raised =…

Q: In January, 2020, Swifty Corporation purchased a mineral mine for $4800000 with removable ore…

A: The company will use the assets for many years. Since the assets are used for many years in the…

Q: On January 2, 2019, Whistler Company purchased land for $450,000, from which it is estimated that…

A: The process by which financial transactions of the business are recorded and communicated with the…

Q: Headland Mining Company purchased land on February 1, 2020, at a cost of $939,500. It estimated that…

A: Total cost of land = Cost of land+Restoration obligation+Development cost-Resale value of the…

Q: Tamarisk Mining Company purchased land on February 1, 2020, at a cost of $945,100. It estimated that…

A: We have the following information: Tamarisk Mining Company purchased land on February 1, 2020, at a…

Q: In August 2020, Heavy-lift Helicopters Ltd. purchased a new helicopter for its logging and heavy…

A: Units of production method A method that is used to calculate depreciation and under which the usage…

Q: Oil Products Company purchases an oil tanker depot on January 1, 2020, at a cost of $2,400,000. Oil…

A: Journal entry: Journal entry is the book of original entry where first transactions are recorded in…

Q: On January 2, 2018, ABC Company purchased land for ₱450,000, from which it estimated that 400,000…

A: When fixed assets are purchased, they will be recorded at their purchase cost. When they are put…

Q: On January 2, 2019, Whistler Company purchased land for $450,000, from which it is estimated that…

A: Depletion is like depreciation. It is used in mines. Here Whistler company has purchased a mine at…

Q: Tamarisk Mining Company purchased land on February 1, 2020, at a cost of $ 914,300. It estimated…

A: Cost Per Unit: It is calculated by taking into account two elements - variable cost and fixed cost -…