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Cullumber Mining Company purchased land on February 1, 2020, at a cost of $1,111.100. It estimated that a total of 52,500 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 $95,400. It believes it will be able to sell the property afterwards for $106,000. It incurred developmental costs of $212,000 before it was able to do any mining. In 2020, resources removed totaled 26,250 tons. The company sold 19.250 tons. Compute the following information for 2020. (a) (b) (c) Per unit mineral cost Total material cost of December 31, 2020, inventory Total material cost in cost of goods sold at December 31, 2020 $ 000

Cullumber Mining Company purchased land on February 1, 2020, at a cost of $1,111.100. It estimated that a total of 52,500 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 $95,400. It believes it will be able to sell the property afterwards for $106,000. It incurred developmental costs of $212,000 before it was able to do any mining. In 2020, resources removed totaled 26,250 tons. The company sold 19.250 tons. Compute the following information for 2020. (a) (b) (c) Per unit mineral cost Total material cost of December 31, 2020, inventory Total material cost in cost of goods sold at December 31, 2020 $ 000

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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Cullumber Mining Company purchased land on February 1, 2020, at a cost of $1,111,100. It estimated that a total of 52,500 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 $95,400. It believes it will be able to sell the property afterwards for $106,000. It incurred developmental costs of $212,000 before it was able to do any mining. In 2020, resources removed totaled 26,250 tons. The company sold 19.250 tons. Compute the following information for 2020. (a) (b) (c) Per unit mineral cost Total material cost of December 31, 2020, inventory Total material cost in cost of goods sold at December 31, 2020 $ $
Transcribed Image Text:Cullumber Mining Company purchased land on February 1, 2020, at a cost of $1,111,100. It estimated that a total of 52,500 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 $95,400. It believes it will be able to sell the property afterwards for $106,000. It incurred developmental costs of $212,000 before it was able to do any mining. In 2020, resources removed totaled 26,250 tons. The company sold 19.250 tons. Compute the following information for 2020. (a) (b) (c) Per unit mineral cost Total material cost of December 31, 2020, inventory Total material cost in cost of goods sold at December 31, 2020 $ $
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