000 tons. In 2018, the company mined 140,000 tons and sold 130,000 tons. The company uses a FIFO cost flow assumption. (Round depletion rate to two decimal places) (Note: There are 2 questions in this Problem: Depletion expense for 2017 Depletion included in 2018 cost of sales)
000 tons. In 2018, the company mined 140,000 tons and sold 130,000 tons. The company uses a FIFO cost flow assumption. (Round depletion rate to two decimal places) (Note: There are 2 questions in this Problem: Depletion expense for 2017 Depletion included in 2018 cost of sales)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On January 2, 2016, Dax Company purchased land for P450,000 from which it is estimated that 400,000 tons of ore could be extracted. It estimates that it will cost P80,000 to restore the land, after which it could be sold for P30,000.
During 2016, the company mined 80,000 tons and sold 50,000 tons. During 2017, the company mined 100,000 tons and sold 120,000 tons. At the beginning of 2018 the company spent an additional P100,000, which increased the reserves by 60,000 tons. In 2018, the company mined 140,000 tons and sold 130,000 tons. The company uses a FIFO cost flow assumption. (Round depletion rate to two decimal places)
(Note: There are 2 questions in this Problem:
During 2016, the company mined 80,000 tons and sold 50,000 tons. During 2017, the company mined 100,000 tons and sold 120,000 tons. At the beginning of 2018 the company spent an additional P100,000, which increased the reserves by 60,000 tons. In 2018, the company mined 140,000 tons and sold 130,000 tons. The company uses a FIFO cost flow assumption. (Round depletion rate to two decimal places)
(Note: There are 2 questions in this Problem:
Depletion expense for 2017
Depletion included in 2018 cost of sales)
Depletion included in 2018 cost of sales)
Depletion for 2017
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