Assume the following data for the following wells commingled production tanks on the Wilmington Ranch located in LaVaca County, Texas. Measured production is 2,228 barrels from Lease C and 2,280 barrels from Lease D. After treatment at the central tank battery, 4,500 barrels are sold. Lease C Wells Well 1 24-Hr Test (bbl) 30 Days Produced 28 Well 2 40 30 Lease D Wells 24-Hr Test (bbl) Days Produced Well 1 20 30 Well 2 35 30 Well 3 50 26 Current Spot Oil Price Severance Tax Rate $46.00/bbl 5% Working Interest Royalty interest 100% 1/8th Prepare entries recognizing revenue at time of sale if the OPERATOR assumes the responsibility of distributing severance taxes and royalty. English (United States)

Assume the following data for the following wells commingled production tanks on the Wilmington Ranch located in LaVaca County, Texas. Measured production is 2,228 barrels from Lease C and 2,280 barrels from Lease D. After treatment at the central tank battery, 4,500 barrels are sold. Lease C Wells Well 1 24-Hr Test (bbl) 30 Days Produced 28 Well 2 40 30 Lease D Wells 24-Hr Test (bbl) Days Produced Well 1 20 30 Well 2 35 30 Well 3 50 26 Current Spot Oil Price Severance Tax Rate $46.00/bbl 5% Working Interest Royalty interest 100% 1/8th Prepare entries recognizing revenue at time of sale if the OPERATOR assumes the responsibility of distributing severance taxes and royalty. English (United States)

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 3P: Zippy Inc. manufactures a fuel additive, Surge, which has a stable selling price of 44 per drum. The...

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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
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?
batch are as TOROWS! Chemical Echol Protex Benz CT-40 Total Echol Protex Benz CT-40 Total Denz CT-40 Total Chemical Echol The quantities of chemicals purchased and used during the current production period are shown in the following schedule. A total of 120 batches of Gas Gain were manufactured during the current production period. Energy Products determines its cost and chemical usage variations at the end of each production period, Chemical Quantity Used 22,800 sters 11,040 32,400 6,480 72,720 liters Protex Benz CT-40 Total 200 liters 100 Mix 250 Usage variance Mix variance 50 Yield variance 600 liters Required: Compute the total direct materials usage variance, and then break down this variance into its mix and yield components. Do not round intermediate computations and round final answers to the nearest cent. (CMA adapted) 250 50 $0.200 600 liters SP 0.425 0.150 0.300 0.150 0.300 The quantities of chemicals purchased and used during the current production period are shown in the…
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Waterways has two major public-park projects to provide with comprehensive irrigation in one of its service locations this month. Job J57 and Job K52 involve 15 acres of landscaped terrain which will require special-order sprinkler heads to meet the specifications of the project. Using a job cost system to produce these parts, the following events occurred during December. Raw materials were requisitioned from the company's inventory on December 2 for $6.294; on December 8 for $1,308; and on December 14 for $4,284. In each instance, two- thirds (2/3) of these materials were for J57 and the rest for KS2. Six time tickets were turned in for these two projects for a total amount of 18 hours of work. All the workers were paid $16.50 per hour. The time tickets were dated December 3. December 9, and December 15. On each of those days, 6 labor hours were spent on these jobs, two-thirds (2/3) for J57 and the rest for K52. The predetermined overhead rate is based on machine hours. The estimated…
Can you please look at this problem and tell me how i am getting the question with the x wrong and give me the solution Perdue Company purchased equipment on April 1 for $77,760. The equipment was expected to have a useful life of three years, or 7,560 operating hours, and a residual value of $2,160. The equipment was used for 1,400 hours during Year 1, 2,600 hours in Year 2, 2,300 hours in Year 3, and 1,260 hours in Year 4. Required: Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) units-of-activity method, and (c) the double-declining-balance method. Note: FOR DECLINING BALANCE ONLY, round the multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar. a. Straight-line method Year Amount Year 1 $fill in the blank 1 Year 2 $fill in the blank 2 Year 3 $fill in the blank 3 Year 4 $fill in the blank 4 b. Units-of-activity method…