Question: On July 1 2014 Sutton Inc invested 720 000 in a

On July 1, 2014, Sutton Inc. invested $720,000 in a mine estimated to have 800,000 tons of ore of uniform grade. During the last 6 months of 2014, 120,000 tons of ore were mined and sold.

Instructions
(a) Prepare the journal entry to record depletion expense.
(b) Assume that the 120,000 tons of ore were mined, but only 90,000 units were sold. How are the costs applicable to the 30,000 unsold units reported?


View Solution:


Sale on SolutionInn
Sales55
Views1501
Comments
  • CreatedDecember 29, 2012
  • Files Included
Post your question
5000