a. Classify the costs in b into IDC and L&WE.

b. Record the above transaction assuming that the well was successful.

c. Record the above transaction assuming that the well was dry if the Company paid a cost of $70,000 to plug and abandoned the hole.

Casing crews…………………………………………………………………….12,000

Roustabout labor……………………………………………………………..16,000

Hauling and transportation……………………………………………..15,000

Production casing…………………………………………………………….72,000

Tank battery…………………………………………………………………….22,000

Lines and connections……………………………………………………..11,000

Pumping unit motor and accessories……………………………..100,000

Casinghead and connections……………………………………………13,000

Tubing……………………………………………………………………………..17,000

Separating and treating equipment…………………………………14,200

Measuring equipment………………………………………………………….600

Downhole pump and rods……………………………………………….11,200

Record the IDC and L&WE in total, not for each cost.

Answer rating: 100% (QA)

OVERHEADS IDC LWE Cementing services 10000 Casing crews 12000 Roustabout labor ... View the full answer