Grass Valley Mining Mines Three Products

question 162

Multiple Choice

Grass Valley Mining mines three products.Gold ore sells for $1,000 per ton, variable costs are $400 per ton, and fixed mining costs are $250,000.Last year the segment margin was $(100,000) . How many tons of gold ore did Grass Valley Mining sell last year?

• A) 375 tons
• B) 1,000 tons
• C) 250 tons
• D) 200 tons

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Definitions:

Prepaid Expense

Payments made in advance for goods or services to be received in the future, recognized as assets until used.

Adjusting Entry

A financial record created at the close of an accounting period to assign earnings and expenses to the time they truly took place.

Interest Receivable

This represents the amount of interest income that has been earned but not yet received in cash by the company.

Adjusting Entry

Accounting records created at the closing of an accounting cycle to distribute revenues and costs to the period they truly belong.