A coal mine cost $1,009,000 and is estimated to hold 57,000 tons of coal. There is no residual value. During the first year of operations, 12,000 tons are extracted and sold. Calculate depletion per unit. (Round your answer to the nearest cent.)
A) $8.85
B) $4.43
C) $17.70
D) $13.27
C) $17.70
Explanation: Depletion per unit = (Cost - Residual value) / Estimated total units
Depletion per unit = ($1,009,000 - 0) / 57,000 tons = $17.70 per ton
You might also like to view...
Which quantitative technique for measuring brand equity helps marketers understand which brands stand out in a consumer's memory and what the strength of his or her association is with the brand?
A. aided recall B. free association C. brand recognition D. brand recall survey E. projective technique
What are the three distinct types of assets that appear in the balance sheets, and what degree of certainty and measurement reliability does each represent?
What will be an ideal response?
As a favour to a friend, Jane Monroe became a director of Urban Attitudes, Inc It went bankrupt and didn't send income tax money deducted from wages to the government, but used the money in a fruitless attempt to save the business
Jane did not attend any board meetings and didn't know of the failure to send the money to the government. Which of the following is true? A) Jane is not liable to pay the taxes because she didn't know of the failure to send in the money. B) Jane is not liable to pay the taxes because she was not personally involved in the failure to send in the taxes. C) Jane is liable merely because she was a director at the time the corporation failed to send in the money. D) Jane is not liable to pay the taxes because she was not paid for being a director. E) Both A and B
A project manager can calculate the projected schedule of the project to completion by using the:
A) Cost performance index. B) Schedule performance index. C) Budgeted cost at completion index. D) Budget efficiency index.