Final answer:
The question is about computing the per-ton costs for Sheffield Mining Company in 2025 by separating total costs into operational and unextracted mineral values.
Step-by-step explanation:
The question involves calculating per-ton costs and analyzing financial statements for Sheffield Mining Company in the year 2025. To find the total per-ton cost, you must determine both the extraction and restoration costs included in the total expenses and compare them to the revenue from selling the mineral. The total cost of operations is given as $708,750. The revenue from mineral sales is $519,750 for 19,250 tons, and the value of the unextracted mineral is $189,000.
To calculate the per-ton cost, subtract the value of the unextracted mineral from the total cost to find the total operational cost that went into mining the sold minerals, then divide that number by the tons of mineral sold:
Total operational cost for extracted mineral = Total cost - Value of unextracted mineral
Per-ton cost = (Total operational cost for extracted mineral) รท (Tons of mineral sold)