Answer:per unit mineral cost = $ 22 per ton
Total material cost of December 31, 2020, inventory= $ 169,840
Total material cost in cost of goods sold at Dec 31,2020= $ 467,060
Explanation:
Details on the property Amount
Add:
Purchase cost $ 1,038,200
Restoration cost $ 111,600
Development cost $ 248,000
Deduct:
Sales value on the property $124,000
Total material cost $1,273,800
Given that 57,900 tons are mined
a)
Per unit mineral cost = 1,273,800/57,900 = $ 22 per ton
b) Total material cost of December 31, 2020, inventory
Ending Minerals in inventory at Dec 31st 2020 = Tonnes mined – tonnes sold = 28,950-21,230 = 7, 720
therefore, total material cost of inventory = 7,720 x 22 = $ 169,840
Total material cost in cost of goods sold at Dec 31,2020
cost per ton = $22
goods sold = 21,230
therefore total material cost of goods sold = $22 x 21,230 = $ 467,060
