Compute the transfer price using full cost and calculate the

Assignment Help Accounting Basics
Reference no: EM131511595

Transfer Pricing Gold Hill Mining Company mines quartz rock at a site in the Boise Basin and then crushes the quartz rock to obtain the gold.

Following is information relative to the operation for the month of July 2013: 

The operation mined 10,000 cubic yards of rock. 
There is a market for the rock before crushing. 
Mining Activities and Crushing Operation prices are below: 
Market Price Per cubic yard - Mining: $10 Crushing $50 
Variable cost per cubic yard - Mining $5 Crushing $10 
Fixed cost per cubic yard - Mining $2 Crushing $20 

Required: 

1. Compute the transfer price using full cost and calculate the operating income for each operation. 

2. Compute the transfer price using variable cost and calculate the operating income for each operation. 

Reference no: EM131511595

Questions Cloud

What is the present value of security : What is the present value of this security?
Cost-benefit analysis of a beach : The Commonwealth of Massachusetts is considering buying a private beach on Cape Cod and opening it up to the public.
Considering launching a new product : Your company has been doing? well, reaching $1.18 million in? earnings, and is considering launching a new product.
Find the present value of due in the future under : Find the present value of $675 due in the future under each of the following conditions.
Compute the transfer price using full cost and calculate the : Compute the transfer price using full cost and calculate the operating income for each operation. Compute the transfer price using variable cost and calculate the operating income for each operation.
Explain some operations management characteristics that : Explain some operations management characteristics that makes it an essential part of business success.
Find electric field outside and inside of a solid sphere : Find electric field outside and inside of a solid sphere having charge density s and radius R.
What was its charge for depreciation and amortization : What was its charge for depreciation and amortization?
The intellectual capital notes on the course schedule : Please take a look at the Intellectual Capital notes on the Course Schedule.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd