Question
In: Accounting
Landmark Coal operates a mine. During July, the company obtained 500 tons of ore, which yielded...
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Solutions
Expert Solution
| Allocation of joint cost: | ||
| Joint cost = $500,000 | ||
| Yield of gold = 250 pounds i.e. 4000 ounce (250*16) | ||
| Selling price of gold = $325 per ounce | ||
| Total selling price of gold => 4000*325 | 1,300,000.00 | |
| Yield of copper = 62,800 pounds | ||
| Selling price of copper = $0.89 per pound | ||
| Total selling price of copper =>0.89*62800 | 55,892.00 | |
| Allocation of joint cost to gold => 500000*(1300000/(100000+55892)) | 479,389.21 | |
| Allocation of joint cost to copper => 500000*(55892/(100000+55892)) | 20,610.79 | |
| Part B: | ||
| a | Total selling price of copper =>0.89*62800 | 55,892.00 |
| b | Joint cost allocated to copper (as above) | 20,610.79 |
| c | Total profit on sale of copper (a-b) | 35,281.21 |
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ekkarill92 answered 3 years agoRelated Solutions
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
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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 63,700 pounds
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Allocate the joint costs using the relative sales values. With
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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
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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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