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lbvjy [14]
4 years ago
5

On April 17, 2021, the Loadstone Mining Company purchased the rights to a coal mine. The purchase price plus additional costs ne

cessary to prepare the mine for extraction of the coal totaled $4,280,000. The company expects to extract 1,070,000 tons of coal during a four-year period. During 2021, 257,000 tons were extracted and sold immediately.
Required:
1. Calculate depletion for 2021.
2. Is depletion considered part of the product cost and included in the cost of inventory?
Business
1 answer:
nata0808 [166]4 years ago
5 0

Answer:

1. The depletion for 2021 is $1,028,000 .

2. No, depletion is not considered part of the product cost and isnt included in the cost of inventory

Explanation:

1. Depletion per ton = $4280000/1070000

                                  = $4 per ton

Depletion for 2021 = 257000 tons*$4

                                = $1,028,000

Therefore, The depletion for 2021 is $1,028,000 .

2. Depletion is not considered as part of product cost, It is shown as expense on income statement and reduced from the value of natural resource and so it is equivalent to depreciation of assets.

Therefore, No, depletion is not considered part of the product cost and isnt included in the cost of inventory

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Answer:

TQM

Explanation:

  • TQM concept we learned about in the first few weeks of class. For TQM to get successful, all workers need to get involved.
  • One great practice that TQM uses is decision-making as a group.  
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3 years ago
Etmer enterprises has budgeted sales for the next four months as follows: budgeted sales in units january 7,400 units february 4
Artyom0805 [142]

Units to be produced in February is calculated as -

Units to be produced in February = February sales + Ending inventory of February - Beginning inventory

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8 0
3 years ago
All the money available in the united states is called
lutik1710 [3]
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3 years ago
The hidden-cost fallacy occurs when a. ​A firm considers irrelevant costs b. ​A firm ignores relevant costs c. ​A firm considers
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Answer:

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Explanation:

As Professor Adam Grant suggests, sunk costs have an important effect on our decisions, but there are three factors that influence us even more: anticipated regret ("will I regret it if I don't give the project another chance?"), project completion ("if I continue to invest, I will finish the project successfully") and the threat of ego ("if I do not continue betting on the project, I will seem a failure"

A good option is to prevent these three factors from occurring and constantly ask for feedback from those around us (collaborators, partners, friends). If we ignore the opinions that go against what we think, we will be putting the project at risk without realizing it. On the contrary, those who do not mind "swallowing pride" in the short term will make better decisions in the long term. On the other hand, separating the project from the person, the entrepreneurial venture, will help us not to take the recommendations of our environment personally and to react much more quickly and quickly.

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4 years ago
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Answer:

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a  Purchase of Supplies of cash                 -$100                   -

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3 0
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