Not use ai solution please given correct answer General Accounting Teal Mining Company purchased land on February 1, 2017, at a cost of $885,500. Itestimated that a total of 55,200 tons of mineral was available for mining. After it hasremoved all the natural resources, the company will be required to restore theproperty to its previous state because of strict environmental protection laws. Itestimates the fair value of this restoration obligation at $103,500. It believes it will beable to sell the property afterwards for $115,000. It incurred developmental costs of$230,000 before it was able to do any mining. In 2017, resources removed totaled27,600 tons. The company sold 20, 240 tons.Compute the following information for 2017.a) Per unit mineral costb) Total material cost of December 31, 2017, inventoryc) Total material cost in cost of goods sold at December 31, 2017

Step 1: Define Material CostMaterial cost can be defined as the total value of raw material used in…

Answered: Teal Mining Company purchased land on…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter13: Property Transactions: Determination Of Gain Or Loss, Basis Considerations, And Nonta Xable Exchanges

Section: Chapter Questions

Problem 85P

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Blue Mining Company purchased land on February 1, 2025, at a cost of $914,200. It estimated that a total of 57,300 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 $109,800. It believes it will be able to sell the property afterwards for $122,000. It incurred developmental costs of $244,000 before it was able to do any mining. In 2025, resources removed totaled 28,650 tons. The company sold 21,010 tons. Compute the following information for 2025. a. b. C. Per unit mineral cost Total material cost of December 31, 2025, inventory Total material cost in cost of goods sold at December 31, 2025 $ tA $ /ton
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