Ceres corporation acquired a mineral mine for $6,000,000 of which $600,000 was ascribed to land value after the mineral has been
removed. geological surveys have indicated that 9 million units of the mineral could be extracted. during 2017, 1.8 million units were extracted and 1.2 million units were sold. what is the total amount of depletion recorded in inventory for 2017?
Answer: The correct answer is "c. The FIFO method computes equivalent units based only on production activity in the current period, ignoring the percentage of completion in beginning Work in Process inventory.".
Explanation: Process Costing is a special accounting method to identify and accumulate direct costs and prorate indirect costs of the same manufacturing process.
The statement "The FIFO method computes equivalent units based only on production activity in the current period, ignoring the percentage of completion in beginning Work in Process inventory." is the most accurate.
Answer: The correct answer is "B. A new resource".
Explanation: The discovery of Surlyn de DuPont, being a new material with multiple potential uses, which could be applied to the manufacture of many products would clearly fall under the category "a new resource".
A). The price of gasoline increased in coastal cities since gasoline was harder to find.
Explanation:
As per the principles of demand and supply, a decrease in supply while demand remains constant will cause the price to increase. In Georgia, the supply of gasoline was interrupted by the storm's effect. There was little gasoline coming in, leading to a shortage. After Electricity went off, gasoline demand must have gone high as people needed fuel for generators.
Gasoline has no close substitutes, especially when used as fuel for cars and generators. A shortage results in the scramble for the little available products. Sellers hike prices to maximize profits, and buyers are willing to pay more to get the scarce gasoline, thereby increasing its prices.
