Universal Oil and Gas Company has been using full cost accounting for 20 years. The following data
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Universal Oil and Gas Company has been using full cost accounting for 20 years.
The following data relate to US properties as of 12/31/20.
REQUIRED: Compute DD&A using the unit-of-revenue method.
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Capitalized costs, plus future development costs Accumulated DD&A. Proved reserves-Oil. -Gas Production in 2020: Oil 20,000 bbl Gas 70,000 Mcf .. Sold at average price of $115/bbl Sold at average price of $6.00/Mpf The current prices at 12/31/20 are as follows: Oil $120/bbl $ 8.00/Mcf Gas $3,000,000 700,000 250,000 bbl 600,000 Mcf
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