What should be the transfer price in order

Assignment Help Accounting Basics
Reference no: EM131921085

Question - The machining division of ITA International has a capacity of 2,070 units. Its sales and cost data are:

Selling price per unit $80

Variable manufacturing costs per unit 20

Variable selling costs per unit 6

Total fixed manufacturing overhead 188,800

The machining division is currently selling 1,840 units to outside customers, and the assembly division of ITA International wants to purchase 330 units from machining. If the transaction takes place, the variable selling costs per unit on the units transferred to assembly will be $0/unit, and not $6/unit. What should be the transfer price in order not to affect the machining division's current profit?

Reference no: EM131921085

Questions Cloud

Discover stored secret keys in a hardware device : Discover stored secret keys in a hardware device. Measure the power consumption of a processor
Compute gamma minimum quarterly estimated tax payments : For each of the following independent cases, compute Gamma's minimum quarterly estimated tax payments that will avoid an underpayment penalty
Advantage do non-relational databases : What advantage do non-relational databases and cloud databases provide to businesses? What are the pros and cons of each?
Federal reserve system is considering end to easy money : The economic outlook has been more favorable lately, and the Federal Reserve System is considering an end to “easy money”,
What should be the transfer price in order : The machining division is currently selling 1,840 units to outside customers, What should be the transfer price in order not to affect the machining division's
Record any health issues or medical supplies administered : Record any health issues or medical supplies administered. How did they affect your decision-making?
Create using swing and netbeans : Explain an applet you would like to develop and describe what kind of GUIs you would create using Swing and Netbeans.
Inheritance hierarchy for swing components : Explain the importance of the inheritance hierarchy for Swing components.
Describe in brief the component or mechanism : MANE4045U Quality Control - Term Project Describe in brief the component or mechanism and its application - Determine the type of control charts needed

Reviews

Write a Review

Accounting Basics Questions & Answers

  Red sauce canning company processes tomatoes into catsup

red sauce canning company processes tomatoes into catsup tomato juice and canned tomatoes. during the summer of 20x5

  Compute interest expense for the semi-annual period

Compute interest expense for the semi-annual period ending December 3

  If abc staffing believes it can charge 80 per hour instead

abc staffing company has been traditionally focused on legal and accounting staffing and is dterming if it should start

  What is the company balance sheet amount

Size of Accounts Receivable [LO1] The Arizona Bay Corporation sells on credit terms of net 30. Its accounts are, on average, four days past due.

  Determine home country income tax liability

Determine the amount of foreign tax credit Avioco will be allowed to take in determining its home country income tax liability.

  Discuss a set of financial statements with ifrs

What determines whether or not to issue an unqualified audit opinion on the compliance of a set of financial statements with IFRS

  Why might this companys target level of steel inventory be

a company produces doors. the following information wasgathered to prepare budgets for the upcoming year beginning

  Preston inc manufactures wooden shelving units for

preston inc. manufactures wooden shelving units for collecting and sorting mail. the company expects to produce 480

  Cash includes the cash surrender value of a life insurance

Cash includes the cash surrender value of a life insurance policy $12,000 and a bank overdraft of $2,500 has been deducted

  What is an attribute? how is it related to an entity

What is an attribute? How is it related to an entity?

  Prepare variable costing contribution income statement

Redo the company's income statement for the quarter using absorption costing. Compute the unit product cost under absorption costing

  Prepare journal entries for events of a company

Prepare journal entries (debit and credit or no entry) for the following events of a company. 06/03/08 Issued 6,000 shares of stock, receiving $42,000

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