Answer:
cost of goods available for sale= $29,100
Explanation:
Giving the following information:
Sales Revenue$26,000
Beginning Finished Goods Inventory8,000
Ending Finished Goods Inventory13,500
Cost of Goods Manufactured15,600
cost of goods available for sale= beginning finished goods inventory + purchases
We have to find the amount of purchases.
We know that:
cost of goods manufactured= Beginning Finished Goods Inventory + purchases - Ending Finished Goods Inventory
15600= 8000 + purchases - 13500
purchases= 15600 - 8000 + 13500
purcases= 21,100
cost of goods available for sale= 8000 + 21100= $29,100
Answer:
Vern's depletion deduction is $175000
Explanation:
given data
mineral interest = $3,500,000
recoverable units = 500,000
mined = 40,000 units
sold = 25,000 units
depletion rate = 22%
to find out
Vern's depletion deduction
solution
we get here depletion expense that is
depletion expense =
...........................1
put here value we get
depletion expense =
depletion expense = $175000
and
percentage depletion = $800,000 × 22%
percentage depletion = $176000
we know that % depletion method is not accept as IRS for certain natural resources
so we use depletion method is use here
Vern's depletion deduction is $175000