a. Per unit mineral cost:
Purchase cost of land | $1,169,500 |
Fair value of restoration obligation | 96,300 |
Development costs | 214,000 |
Sale of property | (107,000) |
Total material costs | $1,372,800 |
Per unit mineral cost = $1,372,800 / 52,800 = $26 per unit
b.
Total material cost of December 31, 2020 inventory = (26,400 - 19,360) * $26 = $183,040
c.
Total material cost in cost of goods sold at December 31, 2020 = 19,360 * $26 = $503,360
< Question 9 of 9 -/1 View Policies Current Attempt in Progress Pearl Mining Company purchased...
Blue Mining Company purchased land on February 1, 2020, at a cost of $1,169,500. It estimated that a total of 52,800 tons of mineral was available for mining. After it has removed all the natural resources, the company will be required to restore the property to its previous state because of strict environmental protection laws. It estimates the fair value of this restoration obligation at $96,300. It believes it will be able to sell the property afterwards for $107,000. It...
Question 7 View Policies Current Attempt In Progress Bridgeport Mining Company purchased land on February 1, 2020, at a cost of $1,031,100. It estimated that a total of 54,000 tons of mineral was available for mining. After it has removed all the natural resources, the company will be required to restore the property to its previous state because of strict environmental protection laws. It estimates the fair value of this restoration obligation at $99,900. It believes it will be able...
Ayayai Mining Company purchased land on February 1, 2020, at a cost of $1,038,200. It estimated that a total of 57,900 tons of mineral was available for mining. After it has removed all the natural resources, the company will be required to restore the property to its previous state because of strict environmental protection laws. It estimates the fair value of this restoration obligation at $111,600. It believes it will be able to sell the property afterwards for $124,000. It...
Sheffield Mining Company purchased land on February 1, 2020, at a cost of $1,150,300. It estimated that a total of 54,600 tons of mineral was available for mining. After it has removed all the natural resources, the company will be required to restore the property to its previous state because of strict environmental protection laws. It estimates the fair value of this restoration obligation at $ 101,700. It believes it will be able to sell the property afterwards for $113,000....
Cullumber Mining Company purchased land on February 1, 2020, at a cost of $972,400. It estimated that a total of 53,700 tons of mineral was available for mining. After it has removed all the natural resources, the company will be required to restore the property to its previous state because of strict environmental protection laws. It estimates the fair value of this restoration obligation at $99,000. It believes it will be able to sell the property afterwards for $110,000. It...
Buffalo Mining Company purchased land on February 1, 2020, at a cost of $1.252,100. It estimated that a total of 57.000 tons of mineral was available for mining. After it has removed all the natural resources, the company will be required to restore the property to its previous state because of strict environmental protection laws. It estimates the fair value of this restoration obligation at $108,900. It believes it will be able to sell the property afterwards for $121,000. It...
Nash Mining Company purchased land on February 1, 2020, at a cost of $1,189,500. It estimated that a total of 56,700 tons of mineral was available for mining. After it has removed all the natural resources, the company will be required to restore the property to its previous state because of strict environmental protection laws. It estimates the fair value of this restoration obligation at $108,000. It believes it will be able to sell the property afterwards for $120,000. It...
Question 9 Wildhorse Mining Company purchased land on February 1, 2020, at a cost of $883,500. It estimated that a total of 51,300 tons of mineral was available for mining. After it has removed all the natural resources, the company will be required to restore the property to its previous state because of strict environmental protection laws. It estimates the fair value of this restoration obligation at $91,800. It believes it will be able to sell the property afterwards for...
Martinez Mining Company purchased land on February 1, 2020, at a cost of $1,031,100. It estimated that a total of 54,000 tons of mineral was available for mining. After it has removed all the natural resources, the company will be required to restore the property to its previous state because of strict environmental protection laws. It estimates the fair value of this restoration obligation at $99,900. It believes it will be able to sell the property afterwards for $111,000. It...
Alcide Mining Company purchased land on February 1, 2020, at a cost of $1,190,000. It estimated that a total of 60,000 tons of mineral was available for mining. After it has removed all the natural resources, the company will be required to restore the property to its previous state because of strict environmental protection laws. It estimates the fair value of this restoration obligation at $90,000. It believes it will be able to sell the property afterwards for $100,000. It...