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d1i1m1o1n [39]
3 years ago
9

Headland Mining Company purchased land on February 1, 2020, at a cost of $1,169,500. It estimated that a total of 52,800 tons of

mineral was available for mining. After it has removed all the natural resources, the company will be required to restore the property to its previous state because of strict environmental protection laws. It estimates the fair value of this restoration obligation at $96,300. It believes it will be able to sell the property afterwards for $107,000. It incurred developmental costs of $214,000 before it was able to do any mining. In 2020, resources removed totaled 26,400 tons. The company sold 19,360 tons. Compute the following information for 2020.
A) Per unit mineral cost.
B) Total material cost of December 31, 2020, inventory.
C) Total material cost in cost of goods sold at December 31, 2020.
Business
1 answer:
Nat2105 [25]3 years ago
8 0

Answer:

1. $26 per unit

2. $183,040

3. $503,360

Explanation:

1. Computation of per unit mineral cost

Per unit mineral cost=(1,169,500+96,300+214,000-107,000)/52,800

Per unit mineral cost=1,372,800/52,800

Per unit mineral cost=$26 per unit

Therefore the Per unit mineral cost will be $26 per unit

2. Computation of Total materials cost

Total materials cost= (26,400 tons-19,360 tons)*26

Total materials cost=7,040*26

Total materials cost=$183,040

Therefore the Total materials cost will be $183,040

3. Calculation for the Total materials cost in Cost of goods sold

Total materials cost in Cost of goods sold= (19,360*26)

Total materials cost in Cost of goods sold =$503,360

Therefore the Total materials cost in Cost of goods sold will be $503,360

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Explanation:

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In 2014 the average cost of a four year college is $26,017. How much is a four year college expected to cost in 2034 based on 7%
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3 years ago
The unemployment rate reported by the Bureau of Labor Statistics includes all of the following type of unemployment with the exc
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8 0
3 years ago
Purchased goods for $4,100 from Diamond Inc. with terms 2/10, n/30. 5 Returned goods costing $1,100 to Diamond Inc. for credit o
bazaltina [42]

Answer: $3,940

Explanation:

Purchase from Diamond

The company received a discount of 2% because they paid within 10 days as per the terms of the sale.

Cost of inventory from Diamond:

= (Cost of goods - Returns) * (1 - 2%)

= (4,100 - 1,100) * 98%

= $2,940

Purchase from Club

Discount period expired so the full $1,000 is paid.

Total inventory cost:

= 2,940 + 1,000

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4 0
2 years ago
Coed Scents, a national producer of young adult perfumes and colognes, needs to determine if it would be cheaper to produce 100,
melisa1 [442]

Answer:

Coed Scents

1. The alternatives for Coed Scents are to reduce cost of internal production or to renegotiate the external purchase price.

2. Relevant costs                                            Internal                External

                                               Total Cost Unit   Cost

Direct materials                          $2,000,000   $20.00

Direct labor                                      350,000        3.50

Variable manufacturing overhead  150,000         1.50

Total cost                                   $2,500,000   $25.00   $2,500,000 $25.00

3. No alternative is more cost-effective.  However, Coed Scents can reduce cost of internal production (materials, labor, and variable overhead).

4. Internal production becomes more cost-effective with this additional costs from outsourced production.  

The cost-effectiveness amounts to $350,000.

Explanation:

a) Data and Calculations:

Production units of Two AM = 100,000 bottles

Purchase price of outside supplier = $25

                                                  Total Cost Unit   Cost

Direct materials                          $2,000,000  $ 20.00

Direct labor                                      350,000        3.50

Variable manufacturing overhead  150,000         1.50

Variable marketing overhead        250,000        2.50

Fixed plant overhead                     300,000        3.00

Total                                          $3,050,000    $30.50

Relevant costs                                            Internal                External

                                               Total Cost Unit   Cost

Direct materials                          $2,000,000   $20.00

Direct labor                                      350,000        3.50

Variable manufacturing overhead  150,000         1.50

Total cost                                   $2,500,000   $25.00   $2,500,000 $25.00

5 0
3 years ago
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