Assume the following data for the following wells commingled production tanks on the Wilmington Ranch located inLaVaca County, Texas. Measured production is 2,228 barrels from Lease C and 2,280 barrels from Lease D. Aftertreatment at the central tank battery, 4,500 barrels are sold.Lease C WellsWell 124-Hr Test (bbl)30Days Produced28Well 24030Lease D Wells24-Hr Test (bbl)Days ProducedWell 12030Well 23530Well 35026Current Spot Oil PriceSeverance Tax Rate$46.00/bbl5%Working InterestRoyalty interest100%1/8thPrepare entries recognizing revenue at time of sale if the OPERATOR assumes the responsibility of distributingseverance taxes and royalty.English (United States)

To prepare the journal entries, recognize the revenue from the sale of oil, taking into account the…

Answered: Assume the following data for the…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter12: Activity-based Management

Section: Chapter Questions

Problem 22E: The activity of moving materials uses four forklifts, each leased for 18,000 per year. A forklift is...

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Well Liberty Well 1 24-Hr Test (bbl) Days Produced 20 30 Freedom Well A-1 35 26 Dyson Powell 50 24 Total Production Sold 2,900 measured at point of delivery Assume the data above for the following wells commingled production in Tank Battery on the Premise Lease located in Fayette County, Texas. Cameron Oil Company (70% WI) and Garcia Company (30% WI) own a joint working interest in the Dowling Field. The expected selling price was $60/bbl. The royalty interest is 1/5 and the severance tax rate is 10%. What amount of gross revenue, royalty, severance taxes, and net revenue should Cameron Oil Company record for each well (Liberty Well 1, Freedom Well A-1, and Dyson Powell)? Focus
Lord Company purchased a machine on January 2, Year 1, for $70,000. The machine had an expected residual value of $10,000, an expected life of 8 years or 24,000 hours, and a capacity to produce 100,000 units. During Year 1, Lord produced 12,000 units in 2,500 hours. In Year 2, Lord produced 15,000 units in 3,000 hours. Required: Question Content Area 1 a. Prepare a schedule showing depreciation expense for Year 1 and Year 2 and the book value of the asset at the end of Year 1 and Year 2 for the Straight-line method. LORD COMPANY Deprecation Schedule Straight-line Beginning Book Value Depreciation Ending Book Value Year 1 $fill in the blank fc5106fc9014fdd_1 $fill in the blank fc5106fc9014fdd_2 $fill in the blank fc5106fc9014fdd_3 Year 2 $fill in the blank fc5106fc9014fdd_4 $fill in the blank fc5106fc9014fdd_5 $fill in the blank fc5106fc9014fdd_6
Well 24-Hr Test (bbl) Days Produced Total Production Sold Liberty Well 1 2,900 – measured at point of delivery 20 30 Freedom Well A-1 35 26 Dyson Powell 50 24 Assume the data above for the following wells commingled production in Tank Battery on the Premise Lease located in Fayette County, Texas. Cameron Oil Company (70% WI) and Garcia Company (30% WI) own a joint working interest in the Dowling Field. The expected selling price was $60/bbl. The royalty interest is 1/5 and the severance tax rate is 10%. Cameron Oil Company assumes the responsibility of distributing severance taxes and royalty. Prepare the revenue entries for Cameron Oil Company and Garcia Company. What amount of gross revenue, royalty, severance taxes and net revenue should Cameron Oil Company record for each well (Liberty Well 1, Freedom Well A-1 and Dyson Powell)?
The Camino Real Landfill was required to install a plastic liner to prevent leachate from migrating into the groundwater. The fill area was 47,000 m² and the installed liner cost was $8 per m2. In order to recover the investment, the owner charges to unload at the rates of $17 per pickup, $25 per dump truck, and $70 per compactor truck load. The fill area is adequate for 4 years. If the annual traffic is estimated to be 2500 pickup loads, 650 dump-truck loads, and 1200 compactor-truck loads, what rate of return will the landfill owner make on the investment? The rate of return that will be made by the landfill owner is % per year.
The Camino Real Landfill was required to install a plastic liner to prevent leachate from migrating into the groundwater. The fill area was 50,000 m2 and the installed liner cost was $8 per m2. In order to recover the investment, the owner charges to unload at the rates of $10 per pick-up, $25 per dumptruck, and $70 per compactor-truck load. The fill area is adequate for 4 years. If the annual traffic is estimated to be 2500 pick-up loads, 650 dumptruck loads, and 1200 compactor-truck loads, what rate of return will the landfill owner make on the investment?
Texas Oil Company (TOC) paid $3,000,000 for an oil reserve estimated to hold 50,000 barrels ofoil. Oil production is expected to be 10,000 barrels in year 1, 30,000 barrels in year 2, and 10,000barrels in year 3. TOC expects to begin selling barrels from its oil inventory in year 4.Required:Assuming these estimates prove to be accurate, show the balances in the oil reserve, accumulateddepletion, and oil inventory accounts in each of the three years. What effect does this yearly depletion have on the income statement?
A West Virginia coal mining operation has installed an in-shaft monitoring system for oxygen tank and gear readiness for emergencies. Based on maintenance patterns for previous systems, costs are minimal for the first few years, increase for a time period, and then level off. Maintenance costs are expected to be $150,000 in year 3, $175,000 in year 4, and amounts increasing by $25,000 per year through year 6 and remain constant thereafter for the expected 10-year life of this system. If similar systems will replace the current one, determine the perpetual equivalent annual maintenance cost at i = 10% per year. Solve using tabulated factors and a spreadsheet, as requested by your instructor.
Answer the questions correctly. 5.
In this assignment you will need to perform an analysis on a hypothetical discovery based on the following information: Field Size 1.4 Tcf Production/Reserve Ratio 7% of the original field size starting producing year 3 Gas Price $3.5/Mcf CapEx $1/Mcf capitalized in 5 years, straight-line depreciation Operating Cost $0.8/Mcf Royalty 10% Government Take 40% Cost recovery limit 60% of gross revenue Discount Rate 10% Income Tax Rate 33% Allow cost recovery carry forward 1. Evaluate the discovery – you need to calculate the total worth, worth to the company, government take, value in terms of entitlement interest and working interest. 2. Evaluate the producing gas reserve – total worth, worth to the company, government take, value in terms of entitlement interest and working interest.
The Weber Company purchased a mining site for $573,259 on July 1. The company expects to mine ore for the next 10 years and anticipates that a total of 94,508 tons will be recovered. During the first year the company extracted 4,359 tons of ore. The depletion expense is a.$51,961.60 b.$23,966.29 c.$26,459.13 d.$53,643.00
Can you help me answer the question of CVP Drill #1?
A company incurs $1240000 of overhead each year in three departments, Processing, Packaging, and Testing. The company performs 800 processing transactions, 200000 packaging transactions, and 2000 tests per year in producing 398000 drums of oil and 594000 drums of sludge. The following data are available: Department Processing Packaging 200000 Testing Expected use of Driver $620000 $695560 800 $544440 2000 $444560 Production information for oil is as follows: Cost Department Expected use of Driver Processing 400 Packaging 116000 Testing $502000 1300 502000 Calculate the amount of overhead assigned to oil. 236000

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