Question: Mining Works Co. acquired a copper mine at a cost of $1,200,000. The estimated number of units available for production from the mine is 3,000,000

Mining Works Co. acquired a copper mine at a cost of $1,200,000. The estimated number of units available for production from the mine is 3,000,000 tons.

(a) During the first year, 400,000 tons are mined and sold.

(b) During the second year, 700,000 tons are mined and sold.

REQUIRED

1. Calculate the amount of depletion expense for both years.

2. Prepare general journal entries for depletion expense.

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