The process of transferring the cost of metal ores and other minerals removed from the earth to an expense account is called:

• One client had indicated that they were interested in purchasing $42,500 worth of products. However, the client has not actually committed to the purchase.
• The bookkeeper already corrected the sales account. However, the bookkeeper may have made a mistake when computing cost of goods sold. She included total production costs for 2014 and did not adjust ending inventory for the $42,500 worth of units left at the end of the year. The amount of ending inventory was determined using a physical count.

Additional information for module 3

• The company made a secondary offering of stock and raised an additional $180,000 which includes $150,000 of Paid-in Capital.
• The company had already paid $15,000 in dividends before deciding on the offering.
• The company now has cash to invest in a piece of raw land on which to build in the future. The investment takes place before year end. The cost of the land is $400,000, the down payment is $40,000 and a note to the bank covers the rest.