Question
In: Finance
Landmark Coal operates a mine. During July, the company obtained 500 tons of ore, which yielded...
Landmark Coal operates a mine. During July, the company obtained 500 tons of ore, which yielded 250 pounds of gold and 63,400 pounds of copper. The joint cost related to the operation was $500,000. Gold sells for $325 per ounce and copper sells for $0.85 per pound. Allocate the joint costs using the relative sales values. With these costs, what is the profit or loss associated with Copper?
Solutions
Expert Solution
Joint cost allocated to Copper = Joint costs*Sales value of Copper/(Sale value of Gold + Sale value of copper)
= 500,000*63400*0.85/(63400*0.85 + 325*250*16)
= $500,000*53890/1,353,890
= $19,901.91
Allocated to Gold = 500,000 - 19,901.91 = $480,098.09
Profit = Sale value - Costs
= 53890 - 19,901.91
= $33,988.09
jeff jeffy answered 2 years agoRelated Solutions
Landmark Coal operates a mine. During July, the company obtained 500 tons of ore, which yielded...
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500 tons of ore, which yielded 250 pounds of gold and 63,700 pounds
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Gold sells for $325 per ounce and copper sells for $0.85 per pound.
Allocate the joint costs using the relative sales values. With
these costs, what is the profit or loss associated with Copper?
Round to two decimal places.
Landmark Coal operates a mine. During July, the company obtained 500 tons of ore, which yielded...
Landmark Coal operates a mine. During July, the company obtained
500 tons of ore, which yielded 250 pounds of gold and 63,400 pounds
of copper. The joint cost related to the operation was $500,000.
Gold sells for $325 per ounce and copper sells for $0.91 per pound.
Allocate the joint costs using the relative sales values. With
these costs, what is the profit or loss associated with Copper?
Round to two decimal places
Landmark Coal operates a mine. During July, the company obtained 500 tons of ore, which yielded...
Landmark Coal operates a mine. During July, the company obtained
500 tons of ore, which yielded 250 pounds of gold and 62,500 pounds
of copper. The joint cost related to the operation was $500,000.
Gold sells for $325 per ounce and copper sells for $0.85 per pound.
Allocate the joint costs using relative weight. With these costs,
what is the profit or loss associated with Copper?
Round to two decimal places.
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