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Alcide Mining Company purchased land on February 1, 2014, at a cost of $1,817,280. It estimated that a total of 64,000 tons of mineral was available for mining. After it has removed all the natural resources, the company will be required to restore the property to its previous state because of strict environmental protection laws. It estimates the fair value of this restoration obligation at $169,920. It believes it will be able to sell the property afterwards for $188,800. It incurred developmental costs of $377,600 before it was able to do any mining. In 2014, resources removed totaled 32,000 tons. The company sold 25,600 tons. Compute the following information for 2014. (a) Per unit mineral cost (b) Total material cost of December 31, 2014 inventory (c) Total materials cost in cost of goods sold at December 31, 2014

Alcide Mining Company purchased land on February 1, 2014, at a cost of $1,817,280. It estimated that a total of 64,000 tons of mineral was available for mining. After it has removed all the natural resources, the company will be required to restore the property to its previous state because of strict environmental protection laws. It estimates the fair value of this restoration obligation at $169,920. It believes it will be able to sell the property afterwards for $188,800. It incurred developmental costs of $377,600 before it was able to do any mining. In 2014, resources removed totaled 32,000 tons. The company sold 25,600 tons. Compute the following information for 2014. (a) Per unit mineral cost (b) Total material cost of December 31, 2014 inventory (c) Total materials cost in cost of goods sold at December 31, 2014

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Alcide Mining Company purchased land on February 1, 2014, at a cost of $1,817,280. It estimated that a total of 64,000 tons of mineral was available for mining. After it has removed all the natural resources, the company will be required to restore the property to its previous state because of strict environmental protection laws. It estimates the fair value of this restoration obligation at $169,920. It believes it will be able to sell the property afterwards for $188,800. It incurred developmental costs of $377,600 before it was able to do any mining. In 2014, resources removed totaled 32,000 tons. The company sold 25,600 tons. Compute the following information for 2014. (a) Per unit mineral cost (b) Total material cost of December 31, 2014 inventory (c) Total materials cost in cost of goods sold at December 31, 2014
Transcribed Image Text:Alcide Mining Company purchased land on February 1, 2014, at a cost of $1,817,280. It estimated that a total of 64,000 tons of mineral was available for mining. After it has removed all the natural resources, the company will be required to restore the property to its previous state because of strict environmental protection laws. It estimates the fair value of this restoration obligation at $169,920. It believes it will be able to sell the property afterwards for $188,800. It incurred developmental costs of $377,600 before it was able to do any mining. In 2014, resources removed totaled 32,000 tons. The company sold 25,600 tons. Compute the following information for 2014. (a) Per unit mineral cost (b) Total material cost of December 31, 2014 inventory (c) Total materials cost in cost of goods sold at December 31, 2014
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