F150 Company has the following information pertaining to its mining operations: Estimated cost of restoring property after mining is completed 400,000 Number of tons mined during the current year 50,000 tons Cost of land 6,000,000 Estimated number of tons of ores mined 400,000 tons Sales value of the land after mining 300,000 Development costs incurred 500,000 Number of tons sold during the current year 35,000 tons Cost of production (excluding depletion) P 7.00 The company already recognized the estimated restoration cost immediately after the resource property was acquired. How much would be the company’s cost of goods sold? a. 525,000 c. 787,500 b. 603,700 d. 822,500
F150 Company has the following information pertaining to its mining operations: Estimated cost of restoring property after mining is completed 400,000 Number of tons mined during the current year 50,000 tons Cost of land 6,000,000 Estimated number of tons of ores mined 400,000 tons Sales value of the land after mining 300,000 Development costs incurred 500,000 Number of tons sold during the current year 35,000 tons Cost of production (excluding depletion) P 7.00 The company already recognized the estimated restoration cost immediately after the resource property was acquired. How much would be the company’s cost of goods sold? a. 525,000 c. 787,500 b. 603,700 d. 822,500
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 6PA: Gimli Miners recently purchased the rights to a diamond mine. It is estimated that there are one...
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F150 Company has the following information pertaining to its mining operations:
Estimated cost of restoring property after mining is completed 400,000
Number of tons mined during the current year 50,000 tons
Cost of land 6,000,000
Estimated number of tons of ores mined 400,000 tons
Sales value of the land after mining 300,000
Development costs incurred 500,000
Number of tons sold during the current year 35,000 tons
Cost of production (excluding depletion) P 7.00
The company already recognized the estimated restoration cost immediately after the resource
property was acquired. How much would be the company’s cost of goods sold?
a. 525,000 c. 787,500
b. 603,700 d. 822,500
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