e Fairy Company purchased a site for limestone quarry for P 100,000 on January 2,2020. It estimates that the quarry will yield 400,000 tons of limestone. It estimates that itsretirement obligation has a fair value of P 20,000 after which the land can be sold for P10,000. In 2020, 80,000 tons were quarried and 60,000 tons sold. Cost of production(excluding depletion) are P4 per ton. Required:a. Compute the depletion cost per ton.b. Compute the total cost of invent

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 January, 2020, Waterway Industries purchased a mineral mine for $4800000 with removable ore…

A: Given that: Purchase price of Mine = $48,00,000 Total tons = 20,00,000 Residual value = $280,000…

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, 2020, Sapphire Mining Company purchased land with valuable natural ore deposits for…

A: The depletion expense refers to the decrease in the value of the natural resource used in the…

Q: On January 2020, Mina Company paid the national government a fee in the amount of P129,000,000 for…

A: Government Fees P12,90,00,000 Present value of restoration cost (P10000000 * 0.385) P38,50,000…

Q: The Company also incurred P2,150,000 of development costs in preparing the property for the…

A: Carrying value is an important part of accounting it is measure of value in which the value of an…

Q: During 2019, a company purchased a mine at a cost of $4,251,000. The company spent an additional…

A: Depletion =[ ( Cost - Residual value ) / Estimated tons ] * Number of tons sold

Q: On January 2020, Mina Company paid the national government a fee in the amount of P129,000,000 for…

A: Government Fees P12,90,00,000 Present value of restoration cost (P10000000 * 0.385) P38,50,000…

Q: In 2021, the Marion Company purchased land containing a mineral mine for $1,600,000. Additional…

A: Calculate the depletion of mine for the year 2021 and 2022 as follows: 1. Calculate depletion for…

Q: On January 2

A: As per the provision given in IND AS 16, cost of property plant and equipment includes the…

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 1, 2020 Universal Company paid P5,400,000 for property containing natural resource of…

A: Wasting assets refers to the resources containing oil, natural gas, ores, mines quarry etc. In these…

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 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: 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 January 2020, Mina Company paid the national government a fee in the amount of P129,000,000 for…

A: Government Fees P12,90,00,000 Present value of restoration cost (P10000000 * 0.385) P38,50,000…

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: On January 2020, Mina Company paid the national government a fee in the amount of P129,000,000 for…

A: Government Fees P12,90,00,000 Present value of restoration cost (P10000000 * 0.385) P38,50,000…

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 January 1, 2021, Stanford Company purchased a mining site that will have to be restored to…

A: The answer is stated below:

Q: At the beginning of 2018, Terra Lumber Company purchased a timber tract from Boise Cantor for…

A: Depreciation:   Depreciation refers to the reduction in the monetary value of a fixed asset due to…

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: eight years. However, after all the resources are removed, the equipment will be of no use and will…

A: Depreciatioin is charged to record reductiion in value of asset over the period of time.…

Q: On January 2021, AAA Company paid the national government a fee in the amount of P129,000,000 for an…

A: Depletion method is applied for assets such as mines, oil industries where exploration of natural…

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 December 31, 2020, a company invested $2,150,000 in an asset. The company estimates that…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: how much should the company include as depletion in its cost of goods sold? * 1,440,000

A: The cost incurred in producing the goods sold, such as direct cost, is known as the cost of goods…

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: On April 20, 2020, Wilhamette Incorporated purchased the right to remove timber from a 20,000-acre…

A: Any right purchased which will be used in coming years is a intangible assets which is to be…

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: On July 1,2021, Phantom Corporation purchased the rights to a mine for a total purchase price of…

A: Depreciation , amortization , depletion all means the fall in value of assets due to one reason or…

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: n July 1, 2019, Lam Company, a calendar year entity, purchased the rights to a mine. The total…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: On June 1, 2021, ABC Company purchased rights to a mine for P30,000,000, of which, P3,000,000 was…

A: Cost of mine = Total purchase value - Amount allocable to land = 30000000 - 3000000 = 27,000,000

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: Compute the depletion cost per ton. Round your answer to three decimal places. Compute the total…

A: Depletion:   It refers to the process of proportionately distributing the cost of the extracting…

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: In 2021, the Marion Company purchased land containing a mineral mine for $1,800,00O. Additional…

A: Depreciation of asset=Cost of asset-Residual valueTotal estimated tons×Tons extracted Book value of…

Q: how much should the company include as depletion in its cost of goods sold?

A: Depletion expenses are the expenses that are charged against the profit due to the usage of natural…

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 -…