Subsidiary Manufactured Part Motor Glass turntable Door Subsidiary Manufactured Part Motor Glass turntable Existing External Market Door Yes No Yes Llikey to be Transferred Internally Yes v Can Sell Externally for This Price Yes $30 N/A 8 Internal Variable Cost $25 20 Which of these parts will likely be transferred internally, thereby giving rise to an internal transfer price? Which of these parts will likely be transferred internally? 5 Internal Absorption Cost $28 25 Purchase Externally for This Price $24 N/A 8

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Subsidiary
Manufactured
Part
Motor
Glass turntable
Door
Subsidiary
Manufactured
Part
Motor
Glass turntable
Existing
External
Market
Yes
Door
No
Yes
Llikey to be
Transferred
Internally
Yes v
Yes v
Can Sell
Externally for
This Price:
No
$30
N/A
8
Internal
Variable Cost
$25
20
5
Which of these parts will likely be transferred internally, thereby giving rise to an internal transfer price? Which of these parts will ne
likely be transferred internally?
Internal
Absorption Cost
$28
25
7
Purchase
Externally for
This Price
$24
N/A
8
Transcribed Image Text:Subsidiary Manufactured Part Motor Glass turntable Door Subsidiary Manufactured Part Motor Glass turntable Existing External Market Yes Door No Yes Llikey to be Transferred Internally Yes v Yes v Can Sell Externally for This Price: No $30 N/A 8 Internal Variable Cost $25 20 5 Which of these parts will likely be transferred internally, thereby giving rise to an internal transfer price? Which of these parts will ne likely be transferred internally? Internal Absorption Cost $28 25 7 Purchase Externally for This Price $24 N/A 8
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