FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Consider the following information relating to the cost of a product supplied internally by a selling division to a buying division:
Production capacity (units)
Price to buy sell externally
Cost per unit
2,000
$310
Direct materials
$30
Direct labour (all variable)
10
Variable overhead
20
Text overhead
5
Total cost
$65
Assume that the internal customer would like to buy the entire production capacity of 2,000 units. If the seller can sell only 600 units externally, wh
acceptable transfer price per unit?
a. $310
b. $65
c. $60
d. indeterminable
a.
Ob. Oc Od
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Transcribed Image Text:MTK to review this question Consider the following information relating to the cost of a product supplied internally by a selling division to a buying division: Production capacity (units) Price to buy sell externally Cost per unit 2,000 $310 Direct materials $30 Direct labour (all variable) 10 Variable overhead 20 Text overhead 5 Total cost $65 Assume that the internal customer would like to buy the entire production capacity of 2,000 units. If the seller can sell only 600 units externally, wh acceptable transfer price per unit? a. $310 b. $65 c. $60 d. indeterminable a. Ob. Oc Od
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