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 2 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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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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