What should be the minimum and maximum transfer costs?
Q: Holmes Company has already spent $90,000 to harvest peanuts. Those peonuts can be sold os is for…
A: Process Further analysis can be implemented if additional revenue earned is greater than additional…
Q: Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and…
A: MARGINAL COSTING INCOME STATEMENT Marginal Costing Income Statement is One of the Important Cost…
Q: GG Merchandise has two producing and two service departments labeled P1, P2, S1 and S2,…
A:
Q: How much more profit (loss) does the company make b
A: Profit is the residual income generated after reduction of costs from the total revenue Now,…
Q: Teslum Inc. has a number of divisions, including the Machina Division, a producer of…
A: Transfer pricing is a tax and accounting approach that allows businesses to price transactions both…
Q: As a boba manufacturer company, Ngeboba supplies boba to Gula Hula and BobaTime. Ngeboba supplies…
A: Transfer pricing can be defined as the value which is attached to the goods or services transferred…
Q: Keep or Drop AudioMart is a retailer of vintage vinyl records and equipment. The store carries two…
A: System ASystem BHeadsetTotalSales$44,800$32,900$8,100$85,800Less:Variable…
Q: ractor Division makes a part that it sells to customers outside of the company. Data concerning this…
A: $26…
Q: Shaw is a lumber company that also manufactures custom cabinetry. It is made up of two divisions:…
A: The process of determining the value that a manufacturer will get in return for the exchange of…
Q: You are the manager of PasadoBa Division of the Delikado Company. Your division’s main product is…
A: Management accounting refers to a process which helps managers in taking short term and long term…
Q: Native Wood Products Ltd sells hand-made coffee tables. The shop owner has divided sales into two…
A: The contribution margin is calculated as difference between sales and variable costs. The break even…
Q: Julia's Motorcycles Inc. produces one model of motorcycle, called the Lightning. The Lightning has…
A: MSRP stands for "manufacturer's recommended retail price," which refers to the price that a…
Q: to the original data. If the store manager were paid $5.30 per unit sold in addition to her current…
A: The details of fixed and variable cost for Aviator Station Inc. is given in the question. Firstly…
Q: Dorina Company makes cases of canned dog food in batches of 1, 000 cases and sells each case for…
A: Special Order decision making is the process of deciding whether to cater to the special order…
Q: Shanghai Company sells glasses, fine china, and everyday dinnerware. It uses activity-based costing…
A:
Q: Holiday Corp. has two divisions, Quail and Marlin. Quail produces a widget that Marlin could use in…
A: Full cost of $7.10 is irrelevant cost because the production in excess capacity will only incur…
Q: Tots-To-Go, Inc., has two divisions—the seat division and the stroller division. The seat division…
A: a. Compute the contribution margin earned annually by each division and by the company as a whole…
Q: TX Electronics is a manufacturer with two departments: computer chips and cell phones. The computer…
A: Capacity in chips division = 650000 unitsCurrent Production = 380000 unitsIdle production =…
Q: Division A sells soybean paste internally to Division B, which in turn, produces soybean burgers…
A: The cost that one division of a firm charges another division for goods and services rendered is…
Q: You are the manager of PasadoBa Division of the Delikado Company. Your division’s main product is…
A: Management accounting is a role inside an organisation that offers timely and appropriate financial…
Q: ArtyFarty Ltd. manufactures handmade, individually painted clay plates. These plates are sold to…
A: Costs are the expenses required to create and sell a product or service, or to acquire an asset.…
Q: Brighton Co. can produce a unit of product for the following costs: Direct material $ 7.30 Direct…
A: The firm should choose that option which provide lower cost
Q: Cullumber Appliance Co. manufactures low-price, no-frills appliances that are in great demand for…
A: Total cost per unit = 260 + 280 + 390 = $930 per unitSelling price = $ 1830 per unit
Q: Surf Company can sell all of the two surfboard models it produces, but it has only 400 direct labor…
A: Lets understand the basics.When entity have scare input resource then management try to choose best…
Q: The Showa Shoe Company has two divisions, Production and Marketing. Production manufactures Showa…
A: Certain terms are used in the given question below : Types of responsibility center: There are…
Q: Orange Incorporated grows and ships cabbage. It costs Orange $7 to put toget process each vegetable.…
A: Difference in the cost is calculated by taking the difference in the units and multiply it by the…
Q: Lucky Clothing creates and sells t-shirts that can be customized. The cost of sales order processing…
A: Activity based costing is a type of costing system under which all indirect costs and overhead costs…
Q: Charlie's Chocolate Factory manufactures chocolate bars and ships them directly to wholesalers and…
A: Indirect product cost: These are expenses that are not directly tied to a specific product's…
Q: Shalom Department makes a part that it sells to customers outside of the company. Data concerning…
A: Transfer Price The internal price allocated to the purchase of one unit of a product made by one…
Q: 2: Requirements 1. Allocate the revenue from the computer bundle purchase to each of the hardware…
A: Hi! Thank you for the question. As per the honor code, We are allowed to answer three sub-parts at a…
Q: Rimmer produces a single product, and she has two levels of production. For smaller events, she…
A: For smaller events:Selling price per unit = $70Direct cost per unit = $25Indirect cost per unit =…
Q: Q1. Murray furniture store sells couches as a retailer. The wholesale cost to them of their most…
A: Gross Profit is the difference between the Selling price of the good or service and all the expenses…
Q: please construct a decision tree and calculate what the net present value of total cost incurred…
A: Decision tree is constructed considering that ElegantWood selected the first online supplier for…
Q: Describe the Ngeboba transaction flow with the two companies and explain with each of the transfer…
A:
Q: AudioMart is a retailer of radios, stereos, and televisions. The store carries two portable sound…
A: Contribution margin is a key financial metric used in cost accounting and financial analysis to…
Q: lom Department makes a part that it sells to customers outside of the company. Data concerning ear…
A: To determine an acceptable price range for both departments, we need to consider the relevant costs…
Q: Surf Company can sell all of the two surfboard models it produces, but it has only 412 direct labor…
A: Required A: For the Glide model: Contribution margin per unit = $212 Direct labor hours per unit = 2…
Q: Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and…
A: Income statement is a financial statement that shows profitability, total revenue and total…
Q: Unearthed Company makes small widgets. The manufacturing costs per unit to produce a widget are as…
A: Prime cost: The prime cost is the cost incurred on direct material and direct labor in the…
Q: The Cell Phone Department has been purchasing the chips that it needs for $3.50 per chip from…
A: If the selling department had no excess capacity the chips department will prefer to sell the chips…
Q: Cathy's Towels sells three items (which it purchases from a supplier): bath towels, hand towels, and…
A: To determine a company's cost structure or the number of units that must be sold to cover costs,…
Q: Bria Furniture sells bed frames and mattresses. One of its products is a premium therapeutic bed set…
A: Performance obligations are the obligations which has been promised to provide to customers in…
Jamison Textiles has two division. One division makes bolts of cloth, and the other division makes t-shirts. The cloth division makes 2 square yards of cloth for P0.26 but sells the cloth to customers for P0.43. The t-shit division can make t-shirts for P0.59 plus the cost of the 2 square yards of cloth and sells t-shirts for P7.00. The company can purchase cloth from a different company for PO.45 per 2 square yards. If Jamison Textiles has no excess capacity and wants to use a negotiated transfer price to sell cloth from the cloth division to the t-shirt division.
What should be the minimum and maximum transfer costs?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Boney Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $53 to buy from farmers and $18 to crush in the company's plant. Two intermediate products, beet fiber and beet juice, emerge from the crushing process. The beet fiber can be sold as is for $25 or processed further for $18 to make the end product industrial fiber that is sold for $39. The beet juice can be sold as is for $32 or processed further for $28 to make the end product refined sugar that is sold for $79. What is the financial advantage (disadvantage) for the company from processing the intermediate product beet juice into refined sugar rather than selling it as is?Dikit corporation makes three different clothing fasteners, Data concerning the three products are as follows: VELCRO METAL NYLON Normal monthly sales volume 100,000 200,000 400,000 Unit selling price P1.65 P1.50 P0.85 Varoable cost per unit 1.25 0.70 0.25 Total fixed expenses are P400,000 per month. All three products are sold in highly competitive markets, so the company is unable to raise its prices without losing unacceptable number of customers. The company has an extremely lean production system, so there is no beginning or ending work in process or finished goods inventories. What is the company's over-all break-even in pesos?Shanghai Company sells glasses, fine china, and everyday dinnerware. They use activity-based costing to determine the cost of the shipping and handling activity. The shipping and handling activity has an activity rate of $5 per pound. A box of glasses weighs 2 lbs, the box of china weighs 4 lbs, and a box of everyday dinnerware weighs 6 lbs. Round answers to nearest whole dollar. a Determine the shipping and handling activity for each product. Glasses $fill in the blank 1 China $fill in the blank 2 Everyday dinnerware $fill in the blank 3 b Determine the total shipping and receiving costs for the china if 2,000 boxes are shipped.$fill in the blank 4
- Shannon’s distributes its beer through a wholesaler, Miller of Denton. The retail selling price for a six pack of its typical craft beer is $12.00. The retailer’s cost per six pack is $8.00. The wholesaler sells the beer to the retailer for this price. Shannon’s sells a six pack to the wholesaler for $5.40. Shannon’s variable costs of production, packaging, and distribution are $3.60 per six pack. Shannon’s has the following annual fixed operating and marketing costs: Marketing Costs $52,405 Consumer Advertising $31,017 Trade Promotion $30,000 Sales Promotion $18,000 What is Shannon’s annual break-even in six packs of beer sold?Tulsa Milling buys oats at $0.60 per pound and produces TPM Oat Flour, TPM Oat Flakes, and TPM Oat Bran. The process of separating the oats into oat flour and oat bran costs $0.30 per pound. The oat flour can be sold for $1.50 per pound, the oat bran for $2.00 per pound. Each pound of oats has 0.2 pounds of oat bran and 0.8 pounds of oat flour. A pound of oat flour can be made into oat flakes for a fixed cost of $240,000 plus a variable cost of $0.60 per pound. Tulsa Milling plans to process 1 million pounds of oats in 20X0, at a purchase price of $600,000. Requirements 1. Allocate all the joint costs to oat flour and oat bran using the physical-units method. 2. Allocate all the joint costs to oat flour and oat bran using the relative-sales-value method. 3. Suppose there were no market for oat flour. Instead, it must be made into oat flakes to be sold. Oat flakes sell for $2.90 per pound. Allocate the joint cost to oat bran and oat flakes using the relative-sales-value method.…Surf Company can sell all of the two surfboard models it produces, but it has only 416 direct labor hours available. The Glide model requires 2 direct labor hours per unit. The Ultra model requires 4 direct labor hours per unit. Contribution margin per unit is $216 for Glide and $332 for Ultra. (a) Compute the contribution margin per direct labor hour for each product. (b) Determine the best sales mix and the resulting contribution margin. Complete this question by entering your answers in the tabs below. Required A Required B Compute the contribution margin per direct labor hour for each product. Glide Ultra Contribution margin per direct labor hour $ $
- Suppose that Stillwater Designs has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places small, frequent orders, and the non-JIT distributor tends to place larger, less frequent orders. Both types of distributors are buying the same product. Stillwater Designs provides the following information about customer-related activities and costs for the most recent quarter: JITDistributors Non-JITDistributors Sales orders 1,000 100 Sales calls 70 70 Service calls 350 175 Average order size 650 6,500 Manufacturing cost/unit $125 $125 Customer costs: Processing sales orders $3,380,000 Selling goods 1,120,000 Servicing goods 1,050,000 Total $5,550,000 Required: 1. Calculate the total revenues per distributor category, and assign the customer costs to each distributor type by using revenues as the allocation base. Selling price for one unit is $150. Round calculations to the nearest dollar. JIT…Toasty Treats Company makes high end toaster ovens. The standard model price is $360 and variable expenses are $210. The deluxe model price is $500 and variable expenses are $300. The superior model price is $1,600 and variable expense per unit is $600. Total fixed expenses are $300,000. Generally, Toasty Treats sells 8 standard models and 4 deluxe models for every superior model sold. What is the number of deluxe models sold at break- even? 500 100 250 400 1,000Shanghai Company sells glasses, fine china, and everyday dinnerware. It uses activity-based costing to determine the cost of the shipping and handling activity. The shipping and handling activity has an activity rate of $12 per pound. A box of glasses weighs 2 pounds, a box of fine china weighs 4 pounds, and a box of everyday dinnerware weighs 6 pounds. a Determine the shipping and handling activity cost to be allocated to each unit of product. Glasses Fine China Everyday dinnerware b Determine the total shipping and receiving costs to be allocated to the fine china if 2,300 boxes are shipped.
- im.Branded Shoe Company manufactures only one type of shoe and has two divisions, the Stitching Division and the Polishing Division. The Stitching Division manufactures shoes for the Polishing Division, which completes the shoes and sells them to retailers. The Stitching Division "sells" shoes to the Polishing Division. The market price for the Polishing Division to purchase a pair of shoes is $48. (Ignore changes in inventory.) The fixed costs for the Stitching Division are assumed to be the same over the range of 40,000-101,000 units. The fixed costs for the Polishing Division are assumed to be $17 per pair at 101,000 units. Stitching's costs per pair of shoes are: Direct materials $11 Direct labor $9 Variable overhead $7 Division fixed costs $5 Polishing's costs per completed pair of shoes are:…ArtyFarty Ltd. manufactures handmade, individually painted clay plates. These plates are sold to stores that sell kitchenware. ArtyFarty Ltd. manufactures large and small plates.The cost price of the clay amounts to R5.00 for a large plate and R2.50 for a smallplate. The price of the paint they use amounts to R4.30 for a large plate and R2.70 fora small plate, irrespective of which color is used. Normally 2% of paint is wasted whenit dries on the paintbrushes and pallets.The factory employs 10 ladies who, according to the budget, can produce 20 plateseach (large or small) per day. The factory operates 230 days a year. These ladies arepaid according to the number of plates they complete each month. 42 000 plates werecompleted during the year and a wage of R336 000 was paid out to the ladies.Variable manufacturing overheads amount to R1.20 per large plate and R1.00 persmall plate. Fixed manufacturing overheads amounted to R138 000 for the year. Thesize of the plate does not influence the…
