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mining co prepare the cost and installation of machinery

Accounting Chapter 8 Problem Questions 2015 - Hometask Guru

On July 23 of the current year, Dakota Mining Co. pays $7,413,360 for land estimated to contain 9,384,000 tons of recoverable ore. It installs machinery costing $1,595,280 that has a 10-year life and no salvage value and is capable of mining the ore deposit in eight years.

Accounting problem help!...Saturn Co. purchases a used ...

May 07, 2013· Prepare journal entries to record the machine's purchase and the costs to ready and install it. Cash is paid for all costs incurred. for Jan 2 and Jan 3. And Prepare journal entries to record depreciation of the machine at December 31, its first year in operations and The year of its disposal.

On July 23 of the current year, Dakota Mining Co. pays ...

Mining Cost Service. When you subscribe to Mining Cost Service, you will receive all of the current PDF files and, if ordered, two full volumes of the current paper copy of current, reliable cost data, plus you will receive a full year's updating service in the format you have chosen.

4. ESTIMATING ROAD CONSTRUCTION UNIT COSTS

The company paid $1,000,000 in 2011 for the mining site and spent an additional $600,000 to prepare the mine for extraction of the copper. After the copper is extracted in approximately four years, the company is required to restore the land to its original condition, including repaving of roads and replacing a …

Solved: On July 23 Of The Current Year, Dakota Mining Co ...

On April 2, 2013, Montana Mining Co. pays $4,618,480 for an ore deposit containing 1,428,000 tons. The company installs machinery in the mine costing $209,400, with an estimated seven-year life and no salvage value. The machinery will be abandoned when the ore during the remaining eight months of 2013. Explanation:

Chapter 9: Asset Valuation (Equipment) - frazier capital

Prepare entries to record (a) the purchase of the land, (b) the cost and installation of machinery, (c) the first five months' depletion assuming the land has a net salvage value of zero after the ore is mined, and (d) the first five months' depreciation on the machinery.

Mining Co Prepare The Cost And Installation Of Machinery

COST ESTIMATION Cost Indexes Present Cost=(original cost at time t)* • Marshall and Swift. 1. All industry-equipment index. Arithmetic average of 47 equipment types. 2. Process-industry equipment index. Weighted average of 8 of these: cement 2% paint 5% chemicals 48% paper 10% clay products 2% petroleum 22% glass 3% rubber 8% M&S was 100 in 1926.

E 11-13 Jackpot Mining Company operates a copper mine in ...

On July 23 of the current year, Dakota Mining Co. pays $4,836,000 for land estimated to contain 7,800,000 tons of recoverable ore. It installs machinery costing $390,000 that has a 10-year life and no salvage value and is capable of mining the ore deposit in eight years.

Accounting Chapter 8 Problem Questions 2015 - Homework Set

The company removes and sells 400,000 tons of ore during its first five months of operations ending on Dec. 31. Depreciation of the machinery is in proportion to the mine's depletion as the machinery will be abandoned after the ore is mined. a. Prepare entries to record purchase of the land b. To record the cost and installation of machinery ...

COST ESTIMATION - University of Oklahoma

Sep 19, 2016· 2. Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $43,500. The machine's useful life is estimated at 10 years, or 385,000 units of product, with a $5,000 salvage value.

It installs machinery costing 562800 that has a 10 year ...

Mining Equipment Fleet - 10,000 tonne per day (ore + waste) open pit mine. The following listings of equipment capital and operating costs are taken directly from the current Mining Cost Service Manual and Mine and Mill Equipment Cost Estimator's Guide. In addition to the items listed here, these manuals contain entries for 74 additional ...

IAS 16 — Property, Plant and Equipment

The unit cost of road construction in dollars per kilometer is the sum of the subunit costs of the road construction activities. Road construction unit costs are estimated by dividing the machine rates by the production rates for the various activities involved in road construction. The road ...

Prepared for: MeMO 2016 - Reducing Mining Costs and …

Jurassic Company owns machinery that cost $900,000 and has accumulated depreciation of $380,000. The expected future net cash flows from the use of the asset are expected to be $500,000. The fair value of the equipment is $400,000.

Chapter 9: Asset Valuation (Equipment) - frazier capital

MeMO 2016 - Reducing Mining Costs and Value Optimization . ... Services Mobile Equipment Parts Processing Camp and Travel. Unit Based Services and Supplies 38% Labour and Salary 53% Fuels, Lube, Gas and Power 9% Traditional Costing –Unit Based Traditional cost accounting methods simply allocate costs, down onto the cost

How to prepare journal entries for this problem?!? On July ...

The company removes and sells 400,000 tons of ore during its first five months of operations ending on Dec. 31. Depreciation of the machinery is in proportion to the mine's depletion as the machinery will be abandoned after the ore is mined. a. Prepare entries to record purchase of the land b. To record the cost and installation of machinery.

Cost of a natural resource; depletion and depreciation ...

Property, Plant, and Equipment is a separate category on a classified balance sheet. It typically follows Long-term Investments and is oftentimes referred to as "PP&E." Items appropriately included in this section are the physical assets deployed in the productive operation of the business, like land, buildings, and equipment.

Acc225 Fundamental Accounting Principles : P8-7A On J ...

The company paid a net purchase price of $150,000, brokerage fees of $5,000, legal fees of $2,000, and freight and insurance in transit of $3,000. In addition, the company paid $1,500 to remove old equipment and $2,000 to install new equipment. Clark would compute the cost of new equipment …

Orange: Connect - Financial Accounting Chapter 8

On July 23 of the current year, Dakota Mining Co. pays $8,394,480 for land estimated to contain 9,432,000 tons of recoverable ore. It installs machinery costing $1,414,800 that has a 10-year life and no salvage value and is capable of mining the ore deposit in eight years.

Machinery | Machinery installation best practices Follow ...

Mechanical Installation Page -1-1. INTRODUCTION AND PURPOSE 1.1. This specification covers the installation, testing and pre-commissioning of mechanical equipment. Work is to be performed in conjunction with the manufacturer's instructions, standard …

ACCT 2 Chapter 8 Flashcards | Quizlet

tangible assets is the element of installation. For many assets, the installation costs are higher than the machine cost itself. In these situations, the market transactions of used machinery may or may not represent the subject machine's value to the business enterprise. These differences can be more easily shown through Table 9-1.

Chapter 10, 11, 12 Exercises. Flashcards | Quizlet

It installs machinery costing $1,595,280 that has a 10-year life and no salvage value and is capable of mining the ore deposit in eight years. The machinery is paid for on July 25, seven days before mining operations begin. The company removes and sells 482,500 tons of ore during its first five months of operations ending on December 31.

Cost Models of Theoretical Mining Operations | CostMine

The cost of equipment for a company is simply how much the company paid for the equipment. However, if this information is not readily available, it is possible to calculate the cost of equipment using a company's balance sheet. Normally, a company will record assets on the balance sheet at the cost of the asset. ...

How to Calculate Equipment Cost | Bizfluent

Jul 25, 2017· The original equipment manufacturer had the part in stock and could ship it out immediately, but the building materials company still lost a full 24 hours of production time while it was being shipped overnight. The loss of production time during the 24 hours cost them approximately a quarter of a million dollars. Calculate Your Risk

Accounting Chapter 8 Problem Questions 2015 - 00152446

Dec 15, 2002· Proper machine installation is critical in maximizing reliability and minimizing life cycle costs. Conversely, improper installation is a chronic source of downtime, poor product quality, reduced capacity and high operating costs. While installation requirements vary depending on the type of machine ...

What Costs Are Included In Property, Plant, & Equipment ...

Cost of a natural resource; depletion and depreciation; Chapters 10 and 11 [This exercise is a continuation of Exercise 10–4 in Chapter 10 focusing on depletion and depreciation.] Jackpot Mining Company operates a copper mine in central Montana.

Entries for Cash and Lump-Sum Purchases of Property, Plant ...

Jun 29, 2014· tons of recoverable ore. It installs machinery costing $562,800 that has a 10-year life and no salvage value and is capable of mining the ore deposit in eight years. The machinery is paid for on July 25, seven days before mining operations begin. The company removes and sells 414,000 tons of ore during its first five months of operations ending on December 31.

Acct 211 Week 7 Assignment - 00056020

Jul 01, 2008· On July 23 of the current year, Dakota Mining Co. pays $4,715,000 for land estimated to contain 5,125,000 tons of recoverable ore. It installs machinery costing $410,000 that has a 10-year life and no salvage value and is capable of mining the ore deposit in eight years.

[Solved] Dakota Mining Co: - coursehero.com

Most manufacturers of machinery supply data for the cost of owning and operating their equipment that will serve as the basis of machine rates. However, such data usually need modification to meet specific conditions of operation, and many owners of equipment will prefer to prepare their own rates. 3.2 Classification of Costs

Mining Equipment Costs - InfoMine

tangible assets is the element of installation. For many assets, the installation costs are higher than the machine cost itself. In these situations, the market transactions of used machinery may or may not represent the subject machine's value to the business enterprise. These differences can be more easily shown through Table 9-1.

Page -1- Mechanical Installation 1. INTRODUCTION AND …

Mar 04, 2012· How to prepare journal entries for this problem?!? On July 23 of the current year, Justin Mining Company pays $4,836,000 for land estimated to contain 3,900,000 tons of recoverable ore. It installs machinery costing $390,000 that has a 10-year life and no salvage value and is capable of mining the ore deposit in eight years. The machinery is paid for on July 25, seven days before mining ...

3. CALCULATION OF MACHINE RATES - fao.org

On April 2, 2013, Montana Mining Co. pays $3,888,210 for an ore deposit containing 1,535,000 tons. The company installs machinery in the mine costing $188,300, with an estimated seven-year life and no salvage value. The machinery will be abandoned when the ore is completely mined.

[Solved] On July 23 of the current year, Dakota Mining Co ...

IAS 16 outlines the accounting treatment for most types of property, plant and equipment. Property, plant and equipment is initially measured at its cost, subsequently measured either using a cost or revaluation model, and depreciated so that its depreciable amount is allocated on a systematic basis over its useful life. IAS 16 was reissued in December 2003 and applies to annual periods ...

Orange: Connect - Financial Accounting Exam (Ch 7-9)

Question 11. On July 23 of the current year, Dakota Mining Co. pays $7,413,360 for land estimated to contain 9,384,000 tons of recoverable ore. It installs machinery costing $1,595,280 that has a 10-year life and no salvage value and is capable of mining the ore deposit in eight years. The machinery is paid for on July 25, seven days before mining operations begin.

7 Things to Consider for Successful Spare Parts Management

Sep 19, 2016· The company installs machinery in the mine costing $153,500, with an estimated seven-year life and no salvage value. The machinery will be abandoned when the ore is completely mined. Montana begins mining on May 1, 2015, and mines and sells 155,000 tons of ore during the remaining eight months of 2015.