F150 Company has the following information pertaining to its mining operations: Estimated cost of restoring property after mining is completed 400,000 Number of tons mined during the current year 50,000 tons Cost of land 6,000,000 Estimated number of tons of ores mined 400,000 tons Sales value of the land after mining 300,000 Development costs incurred 500,000 Number of tons sold during the current year 35,000 tons Cost of production (excluding depletion) P 7.00 The company already recognized the estimated restoration cost immediately after the resource property was acquired. How much would be the company’s cost of goods sold? a. 525,000 c. 787,500 b. 603,700 d. 822,500
F150 Company has the following information pertaining to its mining operations: Estimated cost of restoring property after mining is completed 400,000 Number of tons mined during the current year 50,000 tons Cost of land 6,000,000 Estimated number of tons of ores mined 400,000 tons Sales value of the land after mining 300,000 Development costs incurred 500,000 Number of tons sold during the current year 35,000 tons Cost of production (excluding depletion) P 7.00 The company already recognized the estimated restoration cost immediately after the resource property was acquired. How much would be the company’s cost of goods sold? a. 525,000 c. 787,500 b. 603,700 d. 822,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
F150 Company has the following information pertaining to its mining operations:
Estimated cost of restoring property after mining is completed 400,000
Number of tons mined during the current year 50,000 tons
Cost of land 6,000,000
Estimated number of tons of ores mined 400,000 tons
Sales value of the land after mining 300,000
Development costs incurred 500,000
Number of tons sold during the current year 35,000 tons
Cost of production (excluding depletion) P 7.00
The company already recognized the estimated restoration cost immediately after the resource
property was acquired. How much would be the company’s cost of goods sold?
a. 525,000 c. 787,500
b. 603,700 d. 822,500
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education