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At the beginning of 2023, Oriole Company, a small private company, acquired a mine for $1.765,000. Of this amount, $120,000 was allocated to the land value and the remaining portion to the minerals in the mine. Surveys conducted by geologists found that approximately 19 million units of ore appear to be in the mine Oriole had $190,000 of development costs for this mine before any extraction of minerals. It also determined that the fair value of its obligation to prepare the land for an alternative use when all of the minerals have been removed was $65.000. During 2023 2.6 million units of ore were extracted and 1.90 million of these units were sold. (a) Your answer is correct. Calculate the depletion cost per unit for 2023. (Round answer to 3 decimal places, eg 0.120) Depletion cost per unit S 0.100

At the beginning of 2023, Oriole Company, a small private company, acquired a mine for $1.765,000. Of this amount, $120,000 was allocated to the land value and the remaining portion to the minerals in the mine. Surveys conducted by geologists found that approximately 19 million units of ore appear to be in the mine Oriole had $190,000 of development costs for this mine before any extraction of minerals. It also determined that the fair value of its obligation to prepare the land for an alternative use when all of the minerals have been removed was $65.000. During 2023 2.6 million units of ore were extracted and 1.90 million of these units were sold. (a) Your answer is correct. Calculate the depletion cost per unit for 2023. (Round answer to 3 decimal places, eg 0.120) Depletion cost per unit S 0.100

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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At the beginning of 2023, Oriole Company, a small private company, acquired a mine for $1.765,000. Of this amount, $120,000 was allocated to the land value and the remaining portion to the minerals in the mine. Surveys conducted by geologists found that approximately 19 million units of ore appear to be in the mine, Oriole had $190,000 of development costs for this mine before any extraction of minerals. It also determined that the fair value of its obligation to prepare the land for an alternative use when all of the minerals have been removed was $65.000. During 2023. 2.6 million units of ore were extracted and 1.90 million of these units were sold. (a) Your answer is correct. Calculate the depletion cost per unit for 2023 (Round answer to 3 decimal places, eg. 0.120) Depletion cost per unit $ 0.100
Transcribed Image Text:At the beginning of 2023, Oriole Company, a small private company, acquired a mine for $1.765,000. Of this amount, $120,000 was allocated to the land value and the remaining portion to the minerals in the mine. Surveys conducted by geologists found that approximately 19 million units of ore appear to be in the mine, Oriole had $190,000 of development costs for this mine before any extraction of minerals. It also determined that the fair value of its obligation to prepare the land for an alternative use when all of the minerals have been removed was $65.000. During 2023. 2.6 million units of ore were extracted and 1.90 million of these units were sold. (a) Your answer is correct. Calculate the depletion cost per unit for 2023 (Round answer to 3 decimal places, eg. 0.120) Depletion cost per unit $ 0.100
MFC Clear (b) Prepare the required journal entry, if any, for the total amount of depletion for 2023 (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If ne entry is required, select "No Entry for the account titles and for the amounts List detait entry before credit entry) Account Titles and Explanation List of Accounts Sve for Debit Q Search Credit Attempt 0 of Sused S (c) The parts of this question must be completed in order This part will be waialde when you complete the part above LEWAN MELIPAL
Transcribed Image Text:MFC Clear (b) Prepare the required journal entry, if any, for the total amount of depletion for 2023 (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If ne entry is required, select "No Entry for the account titles and for the amounts List detait entry before credit entry) Account Titles and Explanation List of Accounts Sve for Debit Q Search Credit Attempt 0 of Sused S (c) The parts of this question must be completed in order This part will be waialde when you complete the part above LEWAN MELIPAL
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