User Account

All Pages

What is the appropriate transfer price for each of the units

Assignment Help Accounting Basics
Reference no: EM132905097

Problem - Division A of the Helpful Corporation manufactures product AL57. The division has no idle capacity and can sell all it can produce at $39 per unit. Division B would like to purchase 5,000 units of AL57 from Division A and is negotiating the transfer price. Division A normally has to pay $9 in transportation costs to sell to third-parties. It would not have to pay the $9 in transportation costs if it were to sell the units to Division B. What is the appropriate transfer price for each of the units, assuming Division A sells internally?

Reference no: EM132905097

Questions Cloud

What amount is jim rental expense in the current year : The total insurance premium was $2,000. Assume Jim is a cash-basis, calendar-year taxpayer. What amount is Jim's rental expense in the current year
Calculate consolidated retained earnings : Calculate and allocate acquisition differential - Prepare an amortization schedule of acquisition differential to December 31, 2020 Show all calculations
What is the change in the owner equity amount : If total liabilities increased by $10,000 and the assets increased by $10,000 during the accounting period, what is the change in the owner's equity amount
Determine the payback period and unadjusted rate of return : Income before taxes earned by the ice cream parlor is taxed at an effective rate of 20 percent. Determine the payback period and unadjusted rate of return
What is the appropriate transfer price for each of the units : It would not have to pay the $9 in transportation costs if it were to sell the units to Division B. What is the appropriate transfer price for each of the units
What factor is mainly responsible for the change : What factor is mainly responsible for the change in McDonald's ROA over this period? Is it profit margin or asset turnover or both
Develop a procedure to address that risk : You, CPA, recently started working with Kelly and Partners, Identify an account level risk to be audited and develop a procedure to address that risk
What the Sheridan should record depreciation expense : Sheridan Company purchased a machine on July 1, 2020, for $1080000. What the Sheridan should record depreciation expense on this machine
Prepare the journal entry to record the receipt of goods : Prepare the journal entry to record the receipt of goods by Beds Unlimited, assuming the payment will be made in October

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.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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