Depletion: It refers to the process of proportionately distributing the cost of the extracting natural resources such as coal, mines, and petroleum from the earth to the number of units extracted. The following is the formula to calculate the depletion expense: Depletion Cost per Unit = Cost of the asset − Residual value Estimated Number of Units Depletion Expense = ( Depletion Cost per Unit × Number of units Extracted and Sold ) To record: the journal entry for the purchase of minerals.

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Answer 1

Question

Chapter 9, Problem 9.24E

(a)

To determine

Depletion: It refers to the process of proportionately distributing the cost of the extracting natural resources such as coal, mines, and petroleum from the earth to the number of units extracted. The following is the formula to calculate the depletion expense:

Depletion Cost per Unit = Cost of the asset − Residual valueEstimated Number of Units

Depletion Expense=(Depletion Cost per Unit × Number of units Extracted and Sold)

To record: the journal entry for the purchase of minerals.

(b)

To determine

To record: the journal entry for the payment of fees and other costs.

(c)

To determine

To record: the journal entry for the depletion of the first year.

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Magna Carta Interiors is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 150,000 and estimated factory overhead is $1,140,000. The following information is for September. Job X was completed during September, while Job Y was started but not finished. September 1, inventories: Materials $ 25,700 Work-in-process (All Job X) 55,100 Finished goods 107,300 Materials purchases $ 174,000 Direct materials requisitioned: Job X $ 75,700 Job Y 69,700 Direct labor hours: Job X 8,700 Job Y 7,200 Labor costs incurred: Direct labor ($7.70 per hour) $ 122,430 Indirect labor 50,100 Factory supervisory salaries 12,800 Rental costs: Factory $ 11,000 Administrative offices 4,900 Total equipment depreciation costs: Factory $ 12,100 Administrative offices 4,500 Indirect materials used $ 30,400 The total…

Grass Reed Bayou is a bottling company in The Netherlands. The company uses a normal costing system in which factory overhead is applied on the basis of direct labor costs. Budgeted factory overhead for the year was $680,000, and management budgeted $320,000 of direct labor costs. During the year, the company incurred the following actual costs. Direct materials used $ 382,000Direct labor 313,000Factory overhead 650,700The January 1 balances of inventory accounts are shown below. Materials-all direct $ 64,000Work-in-process 41,400Finished goods 25,600The December 31 balances of these inventory accounts were ten percent lower than the balances at the beginning of the year. The cost of goods manufactured during the year is:

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Answer 2

Question

Chapter 9, Problem 9.24E

(a)

To determine

Depletion: It refers to the process of proportionately distributing the cost of the extracting natural resources such as coal, mines, and petroleum from the earth to the number of units extracted. The following is the formula to calculate the depletion expense:

Depletion Cost per Unit = Cost of the asset − Residual valueEstimated Number of Units

Depletion Expense=(Depletion Cost per Unit × Number of units Extracted and Sold)

To record: the journal entry for the purchase of minerals.

(b)

To determine

To record: the journal entry for the payment of fees and other costs.

(c)

To determine

To record: the journal entry for the depletion of the first year.

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Answer 3

Question

Chapter 9, Problem 9.24E

(a)

To determine

Depletion: It refers to the process of proportionately distributing the cost of the extracting natural resources such as coal, mines, and petroleum from the earth to the number of units extracted. The following is the formula to calculate the depletion expense:

Depletion Cost per Unit = Cost of the asset − Residual valueEstimated Number of Units

Depletion Expense=(Depletion Cost per Unit × Number of units Extracted and Sold)

To record: the journal entry for the purchase of minerals.

(b)

To determine

To record: the journal entry for the payment of fees and other costs.

(c)

To determine

To record: the journal entry for the depletion of the first year.

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Answer 4

Question

Chapter 9, Problem 9.24E

(a)

To determine

Depletion: It refers to the process of proportionately distributing the cost of the extracting natural resources such as coal, mines, and petroleum from the earth to the number of units extracted. The following is the formula to calculate the depletion expense:

Depletion Cost per Unit = Cost of the asset − Residual valueEstimated Number of Units

Depletion Expense=(Depletion Cost per Unit × Number of units Extracted and Sold)

To record: the journal entry for the purchase of minerals.

(b)

To determine

To record: the journal entry for the payment of fees and other costs.

(c)

To determine

To record: the journal entry for the depletion of the first year.

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Answer 5

Chapter 9, Problem 9.24E

(a)

To determine

Depletion: It refers to the process of proportionately distributing the cost of the extracting natural resources such as coal, mines, and petroleum from the earth to the number of units extracted. The following is the formula to calculate the depletion expense:

Depletion Cost per Unit = Cost of the asset − Residual valueEstimated Number of Units

Depletion Expense=(Depletion Cost per Unit × Number of units Extracted and Sold)

To record: the journal entry for the purchase of minerals.

(b)

To determine

To record: the journal entry for the payment of fees and other costs.

(c)

To determine

To record: the journal entry for the depletion of the first year.

Answer 6

Chapter 9, Problem 9.24E

(a)

To determine

Depletion: It refers to the process of proportionately distributing the cost of the extracting natural resources such as coal, mines, and petroleum from the earth to the number of units extracted. The following is the formula to calculate the depletion expense:

Depletion Cost per Unit = Cost of the asset − Residual valueEstimated Number of Units

Depletion Expense=(Depletion Cost per Unit × Number of units Extracted and Sold)

To record: the journal entry for the purchase of minerals.

Answer 7

Chapter 9, Problem 9.24E

(a)

To determine

Depletion: It refers to the process of proportionately distributing the cost of the extracting natural resources such as coal, mines, and petroleum from the earth to the number of units extracted. The following is the formula to calculate the depletion expense:

Depletion Cost per Unit = Cost of the asset − Residual valueEstimated Number of Units

Depletion Expense=(Depletion Cost per Unit × Number of units Extracted and Sold)

To record: the journal entry for the purchase of minerals.

Answer 8

(b)

To determine

To record: the journal entry for the payment of fees and other costs.

Answer 9

(b)

To determine

To record: the journal entry for the payment of fees and other costs.

Answer 10

(c)

To determine

To record: the journal entry for the depletion of the first year.

Answer 11

(c)

To determine

To record: the journal entry for the depletion of the first year.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 9 - Prob. 1QC Ch. 9 - Prob. 2QC Ch. 9 - Which method almost always produces the most...Ch. 9 - A Celty Airline jet costs 28,000,000 and is...Ch. 9 - A copy machine costs 45,000 when new and has...Ch. 9 - Suppose Print and Photo Center in the preceding...Ch. 9 - Prob. 7QC Ch. 9 - Prob. 8QC Ch. 9 - Liberty Corporation reported beginning and ending...Ch. 9 - A truck costs 50,000 when new and has accumulated...

To record: the journal entry for the payment of fees and other costs.

To record: the journal entry for the depletion of the first year.

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Chapter 9 Solutions