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mestny [16]
2 years ago
6

Alpha Mining Company recognizes $2 of depletion for each ton of ore mined. During 2016, 850,000 tons of ore were mined and 725,0

00 tons were sold. Using this information, how much should be recorded for FY 2016 for the following accounts:
1.accumulated Depletion
2.inventory
3.cost of Goods Sold
Business
1 answer:
jonny [76]2 years ago
3 0

Answer:

1. $1,700,000

2. $250,000

3. $1,450,000

Explanation:

Given that,

Depletion for each ton of ore mined = $2

Ore mined during 2016 = 850,000 tons

Ore sold during 2016 = 725,000 tons

1. Accumulated depletion:

= Ore mined during 2016 × Depletion for each ton of ore mined

= 850,000 tons × $2

= $1,700,000

2. Inventory:

= (Ore mined during 2016 - Ore sold during 2016) × Depletion for each ton of ore mined

= (850,000 tons - 725,000 tons) × $2

= 125,000 tons × $2

= $250,000

3. Cost of goods sold:

= Ore sold during 2016 × Depletion for each ton of ore mined

= 725,000 tons × $2

= $1,450,000

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Which of the following represents procurement as part of the support value activities in a value chain​ analysis?
ArbitrLikvidat [17]

Answer:

E. Purchasing inputs such as raw materials, resources, equipment and supplies

Explanation:

In business, <u>Procurement</u><u> </u>is the process of acquiring goods/services in order to support operational activities.

It includes all the aspects related to a purchase: price ( estimates, biddings ) , payment terms, good specifications, quality, delivery, volumes, etc.

8 0
3 years ago
Breezy Company is disposing of equipment that was originally purchased for $550,000 and has $145,000 of accumulated depreciation
BARSIC [14]

Answer:

$405,000

Explanation:

The calculation of total amount is shown below:-

If the company disposes of the equipment to buy the new equipment, the sunk cost will be the old equipment's book value.

Sunk cost = Book value of the old Equipment

Sunk cost = Cost of equipment - Accumulated Depreciation

= $550,000 - $145,000

= $405,000

Therefore for computing the sunk cost we simply deduct the accumulated Depreciation from cost of equipment

7 0
3 years ago
What types of businesses are needed to make the product and deliver it to the final consumer.
Gnesinka [82]

Answer:

Manufacturing and Merchandising businesses

Explanation:

The type of Business needed to make the product is known as MANUFACTURING business. This business buys raw materials and refined them into products that later sell in bulk to wholesalers.

On the other hand, Merchandising business is a form of business that involves buying refined products at wholesale price and then sell to the final consumers.

Hence, in this case, then Greece answer is MANUFACTURING and MERCHANDIZING Business.

8 0
2 years ago
Alex withdrew $500,000 from an account that paid 5 percent annual interest and used the funds to purchase real estate. After one
oksano4ka [1.4K]

Answer:

a) 25,000

Explanation:

The computation of the economic profit is shown below;

Economic profit is

= Revenue - Explicit cost - Implicit cost

= $550,000 - $500,000 - $500,000 × 5%

= $550,000 - $500,000 - $25000

= $25,000

Hence, the economic profit on this deal was $25,000

Therefore the correct option is a.

We simply applied the above formula so that the correct value could come

And, the same is to be considered  

7 0
2 years ago
Art Company issued 6%, 5 year bonds, with par value of $1,600,000, paying semiannual interest for $1,470,226. The annual market
Soloha48 [4]

Answer:

The correct answer is option (B).

Explanation:

According to the scenario, the given data are as follows:

Bond carrying value = $1,470,226

Rate of interest = 8%

Rate of interest (Semiannual ) = 4%

So, we can calculate the the bond interest expense on the first interest payment by using following formula:

The bond interest expense = Bond carrying value × rate of interest (semiannual)

By putting the value we get

= $1,470,226 × 4%

= $58,809

6 0
3 years ago
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