1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
alukav5142 [94]
3 years ago
10

On July 1, 2015, Friedman Inc. invested $717,963 in a mine estimated to have 806,700 tons of ore of uniform grade. During the la

st 6 months of 2015, 103,700 tons of ore were mined and sold.
(a) Calculate depletion cost per unit. (Round answer to 2 decimal places, e.g. 0.50.)

(b) Prepare the journal entry to record depletion expense. (Round answer to 0 decimal places, e.g. 2,125. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(c) Assume that the 103,700 tons of ore were mined, but only 87,000 units were sold. How are the costs applicable to the 16,700 unsold units reported?
Business
1 answer:
yaroslaw [1]3 years ago
5 0

Answer:

The computations are shown below:

Explanation:

(a) Depletion cost per unit

Depletion cost per unit

= $717,963 ÷ 806,700 tons

= $0.89 per ton

(b) The Journal entry to record depletion expense is

Depletion Expense                   A/c Dr     $ 92,293     (103,700 tons × $0.89)

          To To Accumulated Depletion      A/c   $ 92,293

(Being the depletion expense is recorded)

(c) The cost applicable is

= 16,700 unsold units × $0.89

= $14,863  

You might be interested in
Morganton Company makes one product and it provided the following information to help prepare the master budget for its four mon
Ipatiy [6.2K]

Answer:

Morganton Company

1. Budgeting increases effective financial management while ensuring proper allocation of scarce resources.  It encourages planning for the future as well as improved business decisions.  It helps management to identify problems before they occur and to develop strategies for solving any problems that may arise.  With budgeting, the organization is in a better position to monitor its overall performance and ensure the achievement of its goals and objectives.  Finally, budgeting increases the motivation to achieve goals for both the management and individual employees.

2. The budgeted sales for July are $10,000.

3. The expected cash collections for July are $9,040.

4. The accounts receivable balance at the end of July are $6,000.

5. According to the production budget, the units produced in July are 1,040 units.

Explanation:

a) Data and Calculations:

Budgeted selling price per unit = $70

                                      June      July       August    September  

Budgeted unit sales     8,400   10,000    12,000       13,000

Cash Collections:

40% month of sale      3,360     4,000      4,800        5,200

60% month following                5,040      6,000        7,200

Total cash collections 3,360     9,040    10,800       12,400

Production costs:

                                      June      July    August    September

Ending Inventory        2,000     2,400     2,600

Cost of goods sold     8,400   10,000    12,000       13,000

Goods available        10,400   12,400    14,600

Beginning Inventory   1,680    2,000      2,400         2,600

Production costs        8,720   10,400    12,200

Unit cost of materials $10         $10          $10   ($2 * 5)

Units produced            872      1,040      1,220

Accounts receivable balance at July end:

June credit sales      $8,400

June cash collection  3,360

July 1 Beginning bal.  5,040

July credit sales       10,000

Cash collections       9,040

Ending balance        6,000

4 0
3 years ago
Dr. Evil presents the sound of a buzzer to his pet rabbit, and he follows it with the delivery of a small electric shock. After
alexdok [17]

Answer:

Reconditioning

Explanation:

Reconditioning means to "condition again" so the rabbit will demonstrate and condition the fear of the buzzer again.

5 0
3 years ago
In lean operations, input resources arrive for processing only after the preceding batch has been completed. question 10 options
JulijaS [17]
The correct answer would be TRUE, In lean operations, input resources arrive for processing only after the preceding batch has been completed.
6 0
3 years ago
If the Ford Focus is the cost​ object, classify each of the following costs as indirect or​ direct, respectively: property taxes
SSSSS [86.1K]

Answer: B

Explanation: Engines for the cars is a cost directly related to the Ford cars being produced. The property taxes and the janitors rates are indirect costs because they are general costs needed to run the business but are not directly linked to the production of the ford cars

8 0
3 years ago
The four career pathways in finance are?
kondaur [170]

The four career pathways in the finance cluster are banking and related services, business financial management, financial and investment planning, and insurance services.

3 0
3 years ago
Other questions:
  • The benefit of a subsidy will go primarily to sellers when the a. demand for the product is highly inelastic and supply is relat
    9·1 answer
  • If average product is increasing, then marginal product Select one: a. must be greater than average product. b. must be less tha
    13·1 answer
  • Exercise 11-13A Calculate financing cash flows (LO11-5) Dristell Inc. had the following activities during the year (all transact
    12·1 answer
  • Suppose a project is subject to the following risk events (each with a given probability of occurring and a cost associated with
    10·1 answer
  • Suppose the production of cotton causes substantial environmental damage because the pesticides used by cotton farmers often mak
    12·1 answer
  • The speed of your automobile has a huge effect on fuel consumption. Traveling at 65 miles per hour​ (mph) instead of 55 mph can
    13·1 answer
  • Al Darby wants to withdraw $20100 (including principal) from an investment fund at the end of each year for five years. How shou
    13·1 answer
  • Question:
    9·1 answer
  • An investigator conducting a study of a medical device under an ide is required to complete and sign what?
    5·1 answer
  • _____ refers to a contractual, strategic partnership between two or more separate business entities to pursue a business opportu
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!