On July 1, 2020, Splish Brothers Inc. invested $640,710 in a mine estimated to have 791,000 tons of ore of uniform grade. During the last 6 months of 2020, 102,000 tons of ore were mined. Calculate depletion cost per unit. (Round answer to 2 decimal places, e.g. 0.50.) Prepare the journal entry to record depletion. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Assume that the 102,000 tons of ore were mined, but only 79,000 units were sold. Indicate how are the costs applicable to the 23,000 unsold units reported? The costs pertaining to the unsold units are reported in _________ as part of __________ at $ __________.

Question

On July 1, 2020, Splish Brothers Inc. invested $640,710 in a mine estimated to have 791,000 tons of ore of uniform grade. During the last 6 months of 2020, 102,000 tons of ore were mined.

Calculate depletion cost per unit. (Round answer to 2 decimal places, e.g. 0.50.)

Prepare the journal entry to record depletion. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Assume that the 102,000 tons of ore were mined, but only 79,000 units were sold. Indicate how are the costs applicable to the 23,000 unsold units reported?

The costs pertaining to the unsold units are reported in _________ as part of __________ at $ __________.

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