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solong [7]
3 years ago
8

On March 31, 2018, M. Belotti purchased the right to remove gravel from an old rock quarry. The gravel is to be sold as roadbed

for highway construction. The cost of the quarry rights was $164,000, with estimated salable rock of 20,000 tons. During 2018, Belotti loaded and sold 4,000 tons of rock and estimated that 16,000 tons remained at December 31, 2018. At January 1, 2019, Belotti estimated that 20,000 tons still remained. During 2019, Belotti loaded and sold 8,000 tons. Belotti uses the units-of-production method.Belotti would record depletion in 2019 of:a. $102,172 b. $105,452. c. $115,292
Business
1 answer:
garik1379 [7]3 years ago
4 0

Answer:

None of the above options are correct

Depletion amount in 2019 = $52.480

Explanation:

The Cost of Quarry (Depletion Base ) = $164000

Estimated Salable Rock (Units Extracted) = 20000 tons

Depletion Rate = Depletion Base /Units Extracted

Depletion Rate for 2018 = 164000/ 20000 = $8.2/ton

Units Extracted in 2018 = 4000 tons

Depletion amount in 2018 = Depletion Rate for 2018 *Units Extracted in 2018

Depletion amount in 2018 = $(8.2*4000) = $32800

In 2019

Depletion Base in 2019 = The Cost of Quarry - Depletion amount in 2018 = 164000-32800 = $131200

Estimated Salable Rock in 2019 (Units Extracted) = 20000 tons

Depletion Rate for 2019 = 131200/ 20000 = $6.56/ton

Units Extracted in 2019 = 8000 tons

Depletion amount in 2019 = $(6.56*8000) = $52480

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Search... Unlock all answers JOIN FOR FREE jswagballerlife4060 01/08/2020 Business College answered LO 5.3Direct material costs
Tomtit [17]

Answer:

$130,000

Explanation:

Calculation to determine the value of the inventory transferred to the next department

First step is to calculate the Cost per unit

Using this formula

Cost per unit = Direct material costs + Direct labor costs + Overhead

Let plug in the formula

Cost per unit=$3+$5+(100%*$5)

Cost per unit = $3 + $5 + $5

Cost per unit = $13

Second step is to calculate the inventory transferred using this formula

Inventory transferred = Beginning inventory + Started Inventory - Ending inventory .

Let plug in the formula

Inventory transferred = 2,000 + 9,000 - 1,000

Inventory transferred = 10,000 units

Now let calculate the value of the inventory transferred

Using this formula

Value of inventory transferred = Inventory transferred × Cost per unit

Let plug in the formula

Value of inventory transferred = 10000 × $13

Value of inventory transferred = $130,000

Therefore the value of the inventory transferred to the next department is $130,000

8 0
2 years ago
Bob is hired to do computer sales for an electronics store. He agrees that if he leaves his employment, he will not work for ano
Simora [160]
A. covenant not to compete
4 0
3 years ago
The break-even in units sold will decrease if there is an increase in: a. unit sales volume. b. total fixed expenses. c. unit va
s2008m [1.1K]

Answer:

d. Selling Price

Explanation:

Break even point is calculated as \frac{Fixed\ cost}{Contribution\ per\ unit}

Thus, break even point in units only in two cases,

  1. Fixed cost is reduced that is decreased,
  2. Contribution per unit is increased.

Now, here the options are

a. Increase in units sales volume is of no relevance as will not impact the fixed cost or contribution per unit.

b. Increase in fixed cost will result in higher break even point, as numerator in the fraction will increase.

c. Increase in unit variable cost will ultimately decrease the contribution thus, it is of no relevance.

d. Increase in selling price will increase the contribution per unit, that is the increase in denominator value in fraction, thus, break even units will decrease.

Correct option is

d. Selling Price

7 0
3 years ago
One result of earnings management is:a.It brings into question the quality of earningsb.It uses a non-GAAP financial measure to
HACTEHA [7]

Answer:

The correct answer is A. It brings into question the quality of earnings.

Explanation:

It will be taken as management to the action of administering in the most efficient way to that profit that we obtained. When talking about efficiency, it points to the idea that money made up of profit must be spent intelligently.

To understand that not all money from a profit must be spent on personal matters. This does not mean that a certain part is not destined for it, because otherwise there will be no motivation to generate profit on a personal level. That is why it is important to know how to distribute the profit obtained in the most intelligent way possible. For this you only have to allocate 60% (the percentage is estimated the same can vary), to spend the money of a profit on personal expenses. Then one wonders what will happen with the remaining 40% (estimated percentage)? This is where intelligence comes in to manage the profit, this percentage must be used for reinvestment and also to form a contingency fund. This seeks to generate a multiplier effect of the capital earned and also form a "cushion" (savings) for when things are not right.

This type of profit management can be applied either at the company level: where part of the profit is reinvested to grow the business. And in turn it forms a contingency fund for any mishap that can be generated over time.

4 0
3 years ago
While it is plausible that some dishonest acts, like bluffing a person in a business transaction, can have beneficial social con
siniylev [52]

Answer:

True

Explanation:

This affirmation above is backed up by a famous phrase which stated — a falsehood stops to be a falsehood when the parties involved knows it is just a tactics. This implies that it isn't aimed at treating the party involved as a mere means to make profit.

7 0
3 years ago
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