Fundamentals of Oil & Gas Accounting 5th Edition by Rebecca Gallun, Charlotte Wright

Exercise 19

Duck Petroleum hires a drilling contractor to drill a well to the depth of 8,000 feet at a
cost of $300,000. The $300,000 cost includes $5,000 for surface casing. Any drilling to
be completed after reaching the 8,000 foot depth is to be paid at a day rate of $4,000
per day. The 8,000 foot depth is reached on September 14, 2017, and the additional
drilling to 10,000 feet is completed on October 27, 2017.
Duck incurred additional costs as shown on the following schedule.
REqUIRED: Complete the schedule showing whether the cost is IDC or L&WE.