Exam #2 ACC 201

ACC 201 Final exam Answer key

1.A company purchased a mineral deposit for 800,000. It expects this property to produce 1,200,000 tons of ore and to have a salvage value of 50,000. In the current year, the company mined and sold 90,000 tons of ore. Its depletion expense for the current period is equal to:

A.15,000

B.60,000

C.150,000

D.56,250

E.139,500

90,000 tons x (800,000 - 50,000/1,200,000) 56,250

2.A company had inventory of 5 units at a cost of 20 each on November 1. On November 2, they purchased 10 units at 22 each. On November 6 they purchased 6 units at 25 each. On November 8, they sold 18 units for 54 each. Using the LIFO perpetual inventory method, what was the cost of the 18 units sold?

A.395

B.410

C.450

D.510

E.520...