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Anuta_ua [19.1K]
3 years ago
11

Last year, Mountain Top, Inc., purchased a coal mine at a cost of $900,000. The salvage value has been estimated at $100,000. Th

e coal mine has an estimated 200,000 tons of available coal. A total of 70,000 tons were mined and sold during the current year. Complete the necessary journal entry to record depletion expense for the current year by selecting the account names and dollar amounts from the drop-down menus.
Business
1 answer:
melisa1 [442]3 years ago
6 0

Answer:

The Journal entry is as follows:

Depletion expense - Coal Deposit  A/c     Dr. $280,000

To Accumulated depletion -Coal Deposit                        $280,000

(To record the depletion expense for the current year)

Workings:

Depletion per ton = (cost - Salvage) ÷ Total units of production

                              = ($900,000 - $100,000) ÷ 200,000

                              =  $4 per ton

Depletion expense = Tonnage tons mined current year × Depletion per ton

                                = 70,000 tons × $4

                                = $280,000

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8 0
3 years ago
Exercise 6-18 Break-Even and Target Profit Analysis; Margin of Safety; CM Ratio [LO6-1, LO6-3, LO6-5, LO6-6, LO6-7]Menlo Company
bonufazy [111]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Sales= $640,000 ($40)

Variable expenses= 448,000 (28)

Contribution margin= 192,000 ($12)

Fixed expenses= (145,200)

Net operating income=$46,800

1) To calculate the break-even point in units and dollars, we need to use the following formulas:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 145,200/(40-28)

Break-even point in units= 12,100 units

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 145,200/ (12/40)

Break-even point (dollars)= $484,000

<u>2) The break-even point is the number of units to sell to reach a net profit of cero. Therefore, the contribution margin must be equal to the fixed costs.</u>

Contribution margin= 145,200

3) profit= $75,600

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Break-even point in units= 220,800/12

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Net profit= 75,600

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Margin of safety= (current sales level - break-even point)

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Margin of safety ratio= (current sales level - break-even point)/current sales level

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3 years ago
Analysts are forecasting LifeTech Corporation's common stock price to be $120 at the end of one year. Also, LifeTech will pay a
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Answer:

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Price to pay now for the stock =  2.30 + 93.97 = $96.278

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Answer: difficult and not as clear-cut as U.S. firms would like them to be

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