A company extracted 2,580 tons of ore from a deposit of 20,053 tons for which it paid $31,763 for the mineral rights. Mining labor costs amounted to $88,155 and other mining costs were $74,682. A total of 1,826 tons of ore were sold during the year. The total amount of expense to be recorded from the above data for the year is: Answer to nearest whole dollar without any commas or decimal points eg. 1000 not 1,000.00 Enter a negative number as -10 not (10).
Correct Answer is 118,140
1) price paid for minerals / estimated tons = cost per ton x tons removed this year = depletion cost added to inventory
2) (labor + other costs + depletion cost from step one) / tons removed = cost per ton in inventory
3) cost per ton in inventory x tons sold = total expensed in the year.