sage mining company purchased land on February 1 2017, at a cost of $1127500 1,

Question

sage mining company purchased land on February 1 2017, at a cost of $1127500 1, 2017, at a cost of $1,127,500. It estimated that a totall of 56,400 tons of mineral was available for mining. After it has removed environmental protection laws. It estimates the fair value of this all the natural resources, the company will be required to restore the property to its previous state because of strict restoration obligation at $107,100. It believes it will be able to sell the minin property afterwards for $119,000. It incurred developmental costs of $238,000 before it was able to do any g. In 2017, resources removed totaled 28,200 tons. The company sold 20,680 tons Compute the following information for 2017 (a) Per unit mineral cost (b) Total material cost of December 31, 2017, iniventory (c) Total material cost in cost of goods sold at December 31, 2017 Click if you would like to Show Work for this question: Geen Show Work

Explanation / Answer

a Per unit mineral cost = (1127500+107100+238000-119000)/56400= $24 b Total material cost in inventory = (28200-20680)*24= $180480 c Cost of goods sold = 20680*24= $496320

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