On January 1, 2010, Lakeside Enterprises purchased natural resources for $1,200,000. The company expects the resources to produce 12,000,000 units of product. (1) What is the depletion cost per unit? (2) If the company mined and sold 20,000 units in January, what is depletion expense for the month?

Question

Quizplus · Accepted Answer

The Answer of On January 1, 2010, Lakeside Enterprises purchased natural resources for $1,200,000. The company expects the resources to produce 12,000,000 units of product. (1) What is the depletion cost per unit? (2) If the company mined and sold 20,000 units in January, what is depletion expense for the month?

On January 1, 2010, Lakeside Enterprises Purchased Natural Resources for $1,200,000