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Ferguson Metals is a decentralized mining, smelting and metals company with three divisions: mining, lead, and copper. The mining division owns the ore mines that produces the lead and copper that occur in the vein. Mining removes the ore, crushes it and smelts it to separate the metals from the crushed rock. It then sells the two products to the other two divisions: lead and copper. Each batch mined yeilds 50 tons of lead and 25 tons of copper. One ton is 2,000 pounds. The metals are transferred from mining to the lead and copper division at cost plus a small profit to give mining an incentive to produce. Mining Division Income Statement per Batch *Based on a normal volume of 100 batches per year. Metal Division Income Statement ($000s) *The metal costs exceed the costs of the mining division because some metals are purchased on the open market to expand capacity and to smooth production of the downstream industrial products. The current market price for copper is roughly $0.60 per pound; for leads it is $0.30 per pound. But these prices are for substantially purer copper and lead than the mining division has the ability to produce. Mining could sell its lead in the market at its current purity level for $0.17 per pound. Since the metal divisions are currently incurring the cost to refine the metals to the purity levels they require, management does not believe it is equitable to charge the divisions the current market prices for the unrefined metals. If the metals were transferred at market prices, the lead and copper divisions would be paying twice for the refining process and the mining division would be rewarded for a level of purity it is not providing.
Prepare absorption and contribution margin income statements for the succeeding quarter for the division and compute production costs per unit for both approaches and for both quarters
Explain whether users of financial statements should exercise caution when interpreting financial statement compliant with GAAP and explain how the choice of depreciation method affects reported profits.
determine of total dividends paid to shareholders during the most recent year.at the end of the current year smith
Journalize the adjusting entries needed on January 31, 2013 - Compute the overall overstatement or understatement of net income as a result of the omission of these adjustments.
The ledger of Costello Company at the end of the current year shows Accounts Receivable $122,600, Sales Revenue $847,600, and Sales Returns and Allowances $24,200.
Show the treatment of the lot in the income statement (result accounting) and balance sheet for the period 20x1 - 20X6.
Lernout & Hauspie was the world's leading provider of speech and language technology products, solutions, and services to businesses and individuals worldwide. Both Microsoft and Intel invested millions in L&H.
Public policy can be discerned from state laws or court decisions. Implied contracts can be extracted from documents and/or public statements of company officials. Good faith and fair dealing? Is this simply in the eye of the beholder?
I searched the document for both nominal and temporary and was unable to identify any nominal or temporary accounts in the 2015 statement.
Firm H operates its business in State H, which levies a 6 percent sales and use tax. This year, the firm purchased a $690,000 item of tangible property in State K and paid $20,700 sales tax to the state. Compute the use tax that Firm H owes to State ..
On January 1, 2014 the company issued $10,000,000 of 5 percent bonds at par value that mature in five years on December 31, 2018. Cost incurred in issuing the bonds were $500,000. Interest is paid on the bonds annually. The effective interest rate on..
All sales are recorded net of the 2% discount offered by the company. (Any discounts not eventually taken by the purchaser are recognized as interest income.
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