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

  What is the amount of the net fixed assets

Morgantown Movers has net working capital of $11,300, current assets of $31,200, equity of $53,400, and long-term debt of $11,600. What is the amount of the net fixed assets?

  Recorded accrued interest earned on a note receivable

In the following table, indicate the effect each of the nine transactions has on the financial statement elements listed. Use the following code:

  Types of regulations requiring periodic reporting

What types of regulations requiring periodic reporting, both monetary and statistical, come along with the payroll function, and what are the reports required?

  Identifying accounting concepts

The role and process of recognising depreciation in accounting reports, and by identifying accounting concepts which provide the justification for recognising depreciation.

  Unethical practices and behavior in accounting

Write a 500-word article analysis in which you identify situations that might lead to unethical practices and behavior in accounting.

  Crafting a marketing message

Just as important as the culture of a country and/or population segment is in terms of crafting a marketing message is the economic development of a country.

  Describe foreign corrupt practices act

Describe Parts I and II of the Foreign Corrupt Practices Act. What is the impact of this act on companies and public accountants? Explain.

  Cost of machining per ceiling fan

Brannon company manufactures ceiling fans and uses an activity-based costing system. Each ceiling fan consists of 20 separate parts totaling $95 in direct materials, and requires 2.5 hours of machine time produce. What is the cost of machining per..

  Variable overhead spending-overhead budget variances

Alapai Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company has provided the following data for the most recent month: What was the total of the var..

  Exchange lacked commercial substance

Nonmonetary exchange. A machine cost $240,000, has annual depreciation expense of $48,000, and has accumulated depreciation of $120,000 on December 31, 2014. On April 1, 2015, when the machine has a fair value of $96,000, it is exchanged for a sim..

  Klaus toys just paid its annual dividend of 140 the

klaus toys just paid its annual dividend of 1.40. the required return is 16 percent and the dividend growth rate is 2

  Explain how you will visually represent the data for the

you currently work for an automotive parts supply store. your company is growing and is considering expansion. the

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