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On July 1 2017 Melton Inc

Question 270

Essay

On July 1 2017 Melton Inc. invested $560000 in a mine estimated to have 800000 tons of ore of uniform grade. During the last 6 months of 2017 100000 tons of or were mined and sold.
Instructions
(a) Prepare the journal entry to record depletion.
(b) Assume that the 100000 tons of ore were mined but only 85000 units were sold. How are the costs applicable to the 15000 unsold units reported?

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(a)
(b) The costs pertaining ...

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