Fleetwood Corp

question 90

Essay

Fleetwood Corp.purchased a mine in 2016 for $500,000 and estimated that 30,000 tons of iron ore could be extracted from it.There was no residual value.The business extracted and sold 2,500 tons of ore in 2016.How will the mine be reported on the balance sheet at the end of year 2016? (Round all intermediate calculations to the nearest cent. )

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Definitions:

Per-unit Standards

Predetermined costs to produce a single unit of product, used in budgeting and cost control.

Direct Labor Hours

The total hours worked by employees directly involved in manufacturing products or providing services.

Direct Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity expected, multiplied by the standard cost per unit.

Per-unit Standards

Per-unit standards refer to the predetermined costs or metrics applied to individual units of production, aiding in budgeting and performance evaluation.