Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Two divisions of a CMI are involved in a dispute. Division A purchases Part 101 and Division B purchases Part 201 from a third division, C. Both divisions need the parts for products that they assemble. The intercompany transactions have remained constant for several years.
Recently, outside suppliers have lowered their prices, but Division C is not lowering its prices. In addition, all division managers are feeling the pressure to increase profit. Managers of divisions A and B would like the flexibility to purchase the parts they need from external parties to lower cost and increase profitability.
The current pattern is that Division A purchases 3,000 units of product part 101 from Division C (the supplying division) and another 1,500 units from an external supplier. The market price for Part 101 is $900 per unit. Division B purchases 1,000 units of Part 201 from Division C and another 500 units from an external supplier. Note that both divisions A and B purchase the needed supplies from both the internal source and an external source at the same time.
The managers for divisions A and B are preparing a new proposal for consideration.
Division C Data 2014 Based on the Current Agreement
Part
101
201
Direct materials
$200
$300
Direct labor
Variable overhead
$600
Transfer price
$1,000
$2,000
Annual volume
3,000 units
1,000 units
Case Assignment
Required:
Mr. Carter is manager of Simmons Farm and Seed Company, a wholesaler of fertilizer, seed, and other farm supplies. The company has been successful in current years primarily because of great customer service, flexible credit terms, customized orde..
What considerations go into choosing a cost allocation plan? Companies can choose among a few allocation methods. Do some methods make more sense in certain situations than others?
Prepare the entry to assign factory labor to production and prepare the entry to record the factory labor costs for the month of January.
Prepare budget for Ballarat Furniture Company
Prepare a flexible budget performance report for July and which of the variances should be of concern to management? Explain.
What activities has your corporation undertaken in term of fulfilling their role as a corporate socially responsible firm?
The Manufacturing overhead was overapplied by $6800, so when we close it to COGS, the new amount comes to $466400.
The minivan is expected to have a $10,000 salvage value at the end of 10 years. This delivery service is expected to generate net cash inflows of $20,000 per year in each of the 10 years. Apnea's cost of capital is 9%. Calculate the NPV of this in..
Knox Company begins operations on January Because all work is done to customer specifications, the company decides to use a job order cost system.
the concept of a balance scorecard is the topic of this module. while there is not necessarily one best way to view a
What is the total cost of producing 1,000 axles and what is the total cost of producing 1,500 axles and what is the per unit cost when producing 1,500 axles?
requiredstudy the information given below and determine which of the two investment opportunities it should choose.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd