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

  Prepare the journal entries for the current month do not

the following events occurred during the first month of operations for xyz ltd. a company specialised in providing

  During its first year of operations beta company paid

during its first year of operations beta company paid 16000for direct material 17000 in wages for production workers

  The company acquired a tract of land in exchange

The following transactions of the Weber Company occurred during 2010:

  As you have learned in this weeks readings the accounting

as you have learned in this weeks readings the accounting equation is assets liabilities owners equity. is the

  Prepare a single step income statement

In its income statement for the year ended December 31, 2010, Pele Company reported the following condensed data.

  Merchandise purchases budget problem

The owner of central dug believes that ending inventories should be sufficient to cover 20 percent of the next month's projected sales. On January 1, there were 84 ankle braces in inventory.

  What is amount of factory overhead controllable variance

The standard factory overhead rate is $10 per direct labor hour ($8 for variable factory overhead and $2 for fixed factory overhead) based on 100% capacity of 30,000 direct labor hours.

  Prepare a bank reconciliation report

Prepare a 1,050-word bank reconciliation report (hint: deduct the amount of the theft from the adjusted balance per books) including the given.

  What is the amount of impairment on the equipment

What is the amount of impairment on the equipment?

  Percentage of pretax income

Suppose that in 2010, Global launches an aggressive marketing campaign that boosts sales by 15%.However, their operating margin falls from 5.57% to 4.50%. Suppose that they have no other income, interest expenses are unchanged, and taxes are the s..

  What method does the company use to value its inventory

air france-klm af a french company prepares its financial statements according to international financial reporting

  How does accounting help the capital allocation process

How does accounting help the capital allocation process?

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