Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 30 views

    PFRS 6 - Exploration For Mineral Resources

    Uploaded by

    Cindy Bartolay
    This document contains solutions to problems related to accounting for mineral resources under PFRS 6. It includes calculations of depletion, depreciation, and accumulated depreciation for mining assets over multiple periods. Depletion is calculated based on units extracted multiplied by the depletable amount per unit. Depreciation of equipment is also calculated on a per unit basis. Accumulated depreciation is deducted from the asset cost to determine the carrying amount.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    PFRS 6 - Exploration For Mineral Resources

    Uploaded by

    Cindy Bartolay
    30 views2 pages
    This document contains solutions to problems related to accounting for mineral resources under PFRS 6. It includes calculations of depletion, depreciation, and accumulated depreciation for mining assets over multiple periods. Depletion is calculated based on units extracted multiplied by the depletable amount per unit. Depreciation of equipment is also calculated on a per unit basis. Accumulated depreciation is deducted from the asset cost to determine the carrying amount.

    Original Description:

    Jsjjejeejjej

    Original Title

    Abcede, Exploration

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document contains solutions to problems related to accounting for mineral resources under PFRS 6. It includes calculations of depletion, depreciation, and accumulated depreciation for mining assets over multiple periods. Depletion is calculated based on units extracted multiplied by the depletable amount per unit. Depreciation of equipment is also calculated on a per unit basis. Accumulated depreciation is deducted from the asset cost to determine the carrying amount.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    30 views2 pages

    PFRS 6 - Exploration For Mineral Resources

    Uploaded by

    Cindy Bartolay
    This document contains solutions to problems related to accounting for mineral resources under PFRS 6. It includes calculations of depletion, depreciation, and accumulated depreciation for mining assets over multiple periods. Depletion is calculated based on units extracted multiplied by the depletable amount per unit. Depreciation of equipment is also calculated on a per unit basis. Accumulated depreciation is deducted from the asset cost to determine the carrying amount.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Rosemarie L.

    Abcede

    BSA 3-1

    PFRS 6 – Exploration for Mineral Resources

    SOLUTIONS

    1.)
    Acquisition Cost P26,400,000
    Development Cost 3,600,000
    PV Restoration Cost 1,800,000
    TOTAL P31,800,000
    Residual Value (3,000,000)
    P28,800,000 / 1,200,000 tons(purchased removable ore)= P24
    Removed ore 80,000 x P24= P1,920,000 Depletion for 2020

    How much is the depletion to be presented in the cost of goods sold?


    Sold 60,000 tons x P24= P1,440,000 Cost of Goods Sold

    2.)
    Acquisition Cost P10,000,000
    Residual Value (3,000,000)
    Depletable Amount P7,000,000
    Accumulated Depletion
    (P7,000,000 /P10,000,000 =0.70 x 4,000,000 tons) (2,800,000)
    P4,200,000/7,500,000 tons = P0.56
    1,500,000 tons x P0.56
    = P840,000 Depletion for 2014

    3.)
    Project 1 3,250,000
    Project 3 4,230,000
    Project 4 2,400,000
    Exploration Expense P9,880,000

    4.)
    Purchase price P13,200,000
    Residual Value (400,000)
    Depletable Cost P12,800,000 / 1,600,000 tons estimated
    = 8 x 150,000 tons extracted (25,000 x 6 mons)
    =P1,200,000 Depletion for 2020

    What amount should be recorded as depreciation for the mining equipment for 2020?
    SOLUTION:
    Equipment P6,600,000
    Residual Value (200,000)
    Depreciable amount P6,400,000 / 1,600,000 estimated
    = 4/unit x 150,000 tons (25,000 tons /mon x 12 mons=300,000 x 6/12=150k)
    =P600,000 Depreciation for the mining equipment for 2020

    5.)
    First Year and Second Year
    Cost of Building P2,800,000
    Accumulated Depreciation (1,120,000)
    Cost P2,800,000 / 500,000 tons estimated P1,680,000 CA
    = 5.6/ unit x 100,000 tons= P560,000 x 2 years

    Third Year
    Carrying Amount- 3rd Year P1,680,000 / 8years (10-2)
    = P210,000

    Fourth Year

    P2,800,000 – 1,330,000(1,120,000+210,000)
    =P1,470,000/300,000 tons (500k -200k(1 st&2nd))
    =P4.90 x 100,000 tons
    =P490,000 Depreciation

    6.)

    2020
    P9,000,000 +300,000 - 1,200,000
    = P8,100,000/1,000,000 tons
    =P8.10 x 200,000 sold
    =P1,620,000

    2021
    P8,100,000 – 1,620,000
    =P6,480,000 + 945,000
    =P7,425,000/1,650,000 tons (1,850,000 tons– 200,000tons)
    =P4.50 x 300,000 tons
    =P1,350,000 Depletion expense for 2021

    You might also like