S Homework ASavedAntioch Extraction, which mines ore in Montana, uses a calendar year for both financial-reporting and tax purposes. The followingselected costs were incurred in December, the low point of activity, when 1,100 tons of ore were extracted:Straight-line depreciationCharitable contributions*Mining labor/fringe benefitsRoyaltiesTrucking and hauling$ 23,0006,000159,500149,000165,960*Incurred only in December.Peak activity of 2,400 tons occurred in June, resulting in mining labor/fringe benefit costs of $348,000, royalties of $292,000, andtrucking and hauling outlays of $205,960. The trucking and hauling outlays exhibit the following behavior:Less than 1,100 tonsFrom 1,100-1,599 tonsFrom 1,600-2,099 tonsFrom 2,100-2,599 tons$145,960165,960185,960205,960Antioch uses the high-low method to analyze costs.Required:1. Classify the five costs listed in terms of their behavior: variable, step-variable, committed fixed, discretionary fixed, step-fixed, orsemivariable.2. Calculate the total cost for next February when 1,400 tons are expected to be extracted.3-a. Is hauling 1,100 tons with respect to Antioch's trucking/hauling cost behavior cost-effective?3-b. If the company plans to extract 1,100 tons, at what number of tons can cost-effectiveness be achieved?4. Distinguish between committed and discretionary fixed costs. If Antioch were to experience severe economic difficulties, which ofthe two types of fixed costs should management try to cut?5. Speculate as to why the company's charitable contribution cost arises only in December.Complete this question by entering your answers in the tabs below.< Prev3 of 3Next>MacBook Pro回く※#3243.4.6.78.ERYব Antioch uses the high-low method to analyze costs.Required:1. Classify the five costs listed in terms of their behavior: variable, step-variable, committed fixed, discretionary fisemivariable.2. Calculate the total cost for next February when 1,400 tons are expected to be extracted.3-a. Is hauling 1,100 tons with respect to Antioch's trucking/hauling cost behavior cost-effective?3-b. If the company plans to extract 1,100 tons, at what number of tons can cost-effectiveness be achieved?4. Distinguish between committed and discretionary fixed costs. If Antioch were to experience severe economicthe two types of fixed costs should management try to cut?5. Speculate as to why the company's charitable contribution cost arises only in December.pokntComplete this question by entering your answers in the tabs below.Reg 1Reg 2Reg 3AReq 3BReq 4Req 5Calculate the total cost for next February when 1,400 tons are expected to be extracted.Total cost< Req 1Req 3A< Prev3 of 3NextМacВook Pro2$&6.78WERY# 32.

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Answered: Antioch Extraction, which mines ore in…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter7: Fixed Assets, Natural Resources, And Intangible Assets

Section: Chapter Questions

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-d PR 6-37 (Algo) Cost Behavior and Analysis; High-Low Method (LO 6- 2, 6-4, 6-5) Antioch Extraction, which mines ore in Montana, uses a calendar year for both financial- reporting and tax purposes. The following selected costs were incurred in December, the low point of activity, when 1,500 tons of ore were extracted: Straight-line depreciation Charitable contributions* Mining labor/fringe benefits Royalties Trucking and hauling $ 35,000 10,000 277,500 145,000 279,915 *Incurred only in December. Peak activity of 2,800 tons occurred in June, resulting in mining labor/fringe benefit costs of $518,000, royalties of $236,000, and trucking and hauling outlays of $364,915. The trucking and hauling outlays exhibit the following behavior: Less than 1,500 tons. From 1,500 to 1,999 tons From 2,000 to 2,499 tons From 2,500 to 2,999 tons $ 237,415 279,915 322,415 364,915 Antioch uses the high-low method to analyze costs. Required: 1. Classify the five costs listed in terms of their behavior:…
Antioch Extraction, which mines ore in Montana, uses a calendar year for both financial-reporting and tax purposes. The following selected costs were incurred in December, the low point of activity, when 1,500 tons of ore were extracted: Straight-line depreciation ..........................$ 25,000. Royalties .....................................$135,000 Charitable contributions* ...........................11,000. Trucking and hauling ..................275,000 Mining labor/fringe benefits .......................345,000 *Incurred only in December. Peak activity of 2,600 tons occurred in June, resulting in mining labor/fringe benefit costs of $598,000, royalties of $201,000, and trucking and hauling outlays of $325,000. The trucking and hauling outlays exhibit the following behavior: Less than 1,500 tons .................................................................................$250,000 From 1,500–1,899 tons…
Current Attempt in Progress The final amounts were in for Bramble Corp's fixed-MOH costs. The total fixed-MOH costs consisted of $2,500 of insurance (all prepaid), $4,500 in accrued supervisor salaries, $4,600 of factory-related depreciation, and $1,600 in property taxes (paid in cash). Bramble's applied fixed-MOH costs amounted to $14,000 for the year. Further, both fixed-MOH variances were favorable, the price variance being $200 and the volume variance being $600. Record the following journal entries: (1) to recognize the actual fixed-MOH costs incurred, (2) the allocation of fixed-MOH to production, and (3) the final recognition of specific fixed-MOH variances (while closing out the control account). (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) No. Account Titles and Explanation (1) (2) (3)…
Required information Skip to question [The following information applies to the questions displayed below.] On July 23 of the current year, Dakota Mining Company pays $8,247,600 for land estimated to contain 9,480,000 tons of recoverable ore. It installs and pays for machinery costing $1,706,400 on July 25. The company removes and sells 487, 500 tons of ore during its first five months of operations ending on December 31. Depreciation of the machinery is in proportion to the mine's depletion as the machinery will be abandoned after the ore is mined. Required: Prepare entries to record the following. (a) The purchase of the land. (b) The cost and installation of machinery. (c) The first five months' depletion assuming the land has a net salvage value of zero after the ore is mined. (d) The first five months' depreciation on the machinery.
PR 6-37 (Algo) Cost Behavior and Analysis; High-Low Method (LO 6-2, 6-4, 6-5) Antioch Extraction, which mines ore in Montana, uses a calendar year for both financial-reporting and tax purposes. The following selected costs were incurred in December, the low point of activity, when 1,800 tons of ore were extracted: Straight-line depreciation Charitable contributions* Mining labor/fringe benefits Royalties Trucking and hauling *Incurred only in December. Peak activity of 3,100 tons occurred in June, resulting in mining labor/fringe benefit costs of $666,500, royalties of $173,000, and trucking and hauling outlays of $495,385. The trucking and hauling outlays exhibit the following behavior: Less than 1,800 tons From 1,800 to 2,299 tons From 2,300 to 2,799 tons From 2,800 to 3,299 tons Antioch uses the high-low method to analyze costs. Required: 1. Classify the five costs listed in terms of their behavior: variable, step-variable, committed fixed, discretionary fixed, step-fixed, or…
ces Montana Mining Company pays $4,834,810 for an ore deposit containing 1,554,000 tons. The company installs machinery in the mine costing $237,900. Both the ore and machinery will have no salvage value after the ore is completely mined. Montana mines and sells 187,200 tons of ore during the year. Prepare the December 31 year-end entries to record both the ore deposit depletion and the mining machinery depreciation Mining machinery depreciation should be in proportion to the mine's depletion. (Do not round intermediate calculations. Round your final answers to the nearest whole number.) View transaction list Journal entry worksheet 2 Record the year-end adjusting entry for the depletion expense of ore mine. Note: Enter debits before credits. Date General Journal December 31 Depletion expense-Mineral deposit Record entry Accumulated depletion-Mineral deposit Clear entry Debit Credit View general journal
Required information [The following information applies to the questions displayed below.] On July 23 of the current year, Dakota Mining Company pays $4,715,000 for land estimated to contain 5,125,000 tons of recoverable ore. It installs and pays for machinery costing $410,000 on July 25. The company removes and sells 480,000 tons of ore during its first five months of operations ending on December 31. Depreciation of the machinery is in proportion to the mine's depletion as the machinery will be abandoned after the ore is mined. Required: Prepare entries to record the following. (a) The purchase of the land. (b) The cost and installation of machinery. (c) The first five months' depletion assuming the land has a net salvage value of zero after the ore is mined. (d) The first five months' depreciation on the machinery. Complete this question by entering your answers in the tabs below. Required A Required B Required C1 Required C2 Required D1 Required D2 Prepare the journal entry to…
Required information [The following information applies to the questions displayed below.] On July 23 of the current year, Dakota Mining Company pays $4,715,000 for land estimated to contain 5,125,000 tons of recoverable ore. It installs and pays for machinery costing $410,000 on July 25. The company removes and sells 480,000 tons of ore during its first five months of operations ending on December 31. Depreciation of the machinery is in proportion to the mine's depletion as the machinery will be abandoned after the ore is mined. Required: Prepare entries to record the following. (a) The purchase of the land. (b) The cost and installation of machinery. (c) The first five months' depletion assuming the land has a net salvage value of zero after the ore is mined. (d) The first five months' depreciation on the machinery.
Exercise 8. On July 1, 20X1, Hunt Inc. invested $800,000 in a mine estimated to have 800,000 tons of ore of uniform grade. The land is expected to be sold for $80,000 after the ore has been extracted. During the last 6 months of 20X1, 100,000 tons of were mined and sold. a) Prepare the Adjusted Journal Entry to record this Deferred Cost at the end of the year. If we assume that only 80,000 of the 100,000 tons mined in 20X1 were actually sold in this year. Where would the costs of the 20,000 tons of unsold ore be reported? b) Name of Account Date a) Exercise 9. The following are selected transactions of Franco Company for the current year. Based on this information, prepare the Adjusted Journal Entries required at the end of the year. Jan 1- Purchased a small company and recorded goodwill of $150,000. a) How did the purchase of this company generate the asset goodwill of $150,000? Dec 31 Debit Amount Credit Amount b) Show the year end Adjusting Journal Entry if it has been determined…
Required information [The following information applies to the questions displayed below.) On July 23 of the current year, Dakota Mining Co. pays $7.075.200 for land estimated to contaln 8,040,000 tons of recoverable ore. It Installs and pays for machinery costing $804,000 on July 25. The company removes and sells 412,750 tons of ore during Its first five months of operations ending on December 31. Depreclation of the machinery Is In proportion to the mine's depletlon as the machinery wll be abandoned after the ore is mined. (e) If the machine will be used at another site when extraction is complete, how would we depreciate this machine? Depreciated
Required information [The following information applies to the questions displayed below.] On April 1, Cyclone Company purchases a trencher for $294,000. The machine is expected to last five years and have a salvage value of $47,000. Compute depreciation expense at December 31 for both the first year and second year assuming the company uses the straight-line method. Choose Numerator: Year First year Second year Annual Depreciation x Choose Denominator: Fraction of Year 11 11 11 11 11 Annual Depreciation Annual depreciation Depreciation Expense
Required information [The following Information applies to the questions displayed below.) On July 23 of the current year, Dakota Mining Company pays $4,715,000 for land estimated to contain 5,125,000 tons of recoverable ore. It Installs and pays for machinery costing $410,000 on July 25. The company removes and sells 480,000 tons of ore during its first five months of operations ending on December 31. Depreciation of the machinery is in proportion to the mine's depletion as the machinery will be abandoned after the ore is mined. Required: Prepare entries to record the following. (a) The purchase of the land. (b) The cost and installation of machinery. (c) The first five months' depletion assuming the land has a net salvage value of zero after the ore is mined. (d) The first five months' depreciation on the machinery. Complete this question by entering your answers in the tabs below. Required A Required B Required C1 Required C2 Required D1 Required D2 Prepare the journal entry to…

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