On July 1, 2019, Friedman Inc. invested $720,000 In a mine estimated to have 900,000 tons of ore of uniform grade. During the last 6 months of 2019, 100,000 tons of are ore were mined.
- Prepare the journal entry to record depletion.
- Assume that the 100,000 tons of ore were mined, but only 80,000 units were sold. How are the costs applicable to the 20,000 unsold units reported?