Exercise 9-11 On July 1, 2019, Concord Corporation invested $626,130 in a mine e

Question

Exercise 9-11 On July 1, 2019, Concord Corporation invested $626,130 in a mine estimated to have 773,000 tons of ore of uniform grade. During the last 6 months of 2019, 111,000 tons of ore were mined Calculate depletion cost per unit. (Round answer to 2 decimal places, e.g. 0.50.) Depletion cost per unit Prepare the journal entry to record depletion. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31 Assume that the 111,000 tons of ore were mined, but only 79,000 units were sold. Indicate how are the costs applicable to the 32,000 unsold units reported? The costs pertaining to the unsold units are reported in as part of at $

Explanation / Answer

Depletion per unit = 626130/773000= 0.81 Dec-31 Depletion expense 89910 =111000*0.81       Accumulated depletion 89910 The costs pertaining to unsold units are reported in balance sheet as part of finished goods inventory at $25920

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