In January 2015, Fehr Mining Corporation purchased a mineral mine for $6068088 w

Question

In January 2015, Fehr Mining Corporation purchased a mineral mine for $6068088 with removable ore estimated by geological surveys at 2552398 tons. The property has an estimated value of $600,000 after the ore has been extracted. Fehr incurred $1726030 of development costs preparing the property for the extraction of ore. During 2015, 340,000 tons were removed and 300,000 tons were sold. For the year ended December 31, 2015, Fehr should add what dollar amount to Inventory for ore mined during 2015?

Explanation / Answer

Amount to Inventory for ore mined = (6068088-600000+1726030)/2552398*40000= 112743

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