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!
Question - Star Steel Company has two divisions. The Raw Material Division prepares sheet metal at its warehouse facility. The Finishing Division prepares the cut sheet metal into finished products for the air conditioning industry. No inventories exist in either division at the beginning of 2021. During the year, the Raw Material Division prepared 4,50,000 square feet of sheet metal at a cost of Rs 4 per square foot (market price is Rs 6 per square foot). All the sheet metal was transferred to the Finishing Division, where additional operating costs of Rs 2 per square foot were incurred. The 4,50,000 square feet of finished fabricated sheet metal products were sold for Rs 9 per square foot.
Required -
a) Determine the operating income for each division
i. If the transfer price from Raw Material to Finishing is at a cost
ii. If the transfer price from Raw Material to Finishing is at the market price
b) Since the Raw Materials Division sells all of its sheet metal internally to the Finishing Division, does the Raw Materials manager care what price is selected? Why? Should the Raw Materials Division be a cost center or a profit center under the circumstances?
Determine the amount of dividends paid each year to each of the two classes of stockholders: preferred and common and determine the amount of dividends paid each year to each of the two classses of stockholders assuming that the preferred stock is ..
Prepare calculations all relevant costs and irrelevant costs related to the urgent-order of Coved Ltd. charges a price of $14.00 per liter and delivery charges
According to the standards, what direct labour cost should have been incurred to make 19,400 units of the Jogging Mate? By how much does this differ from the cost that was incurred? Break down the difference in cost from (1) above into a labour rate ..
Handsome Tool Company manufactures a product, What is the September cost of production report on a FIFO basis for the Assembly Department.
The following information comes from the accounting records for Chelsea, Inc., for May
Consider the alternative to trashing is choosing the more profitable of the two alternatives (that the new employee looked at and did not like). Find effect will the trashing option (that the new employee wants) have on net income
Effective decentralization is essential for which of the management accounting practices in organizations? Segment reporting./ Product costing.
Tiller uses the periodic inventory system. Using weighted-average inventory method, Evaluate cost of goods sold for the month of January?
Assume a price increase of 10% and a 10% increase in variable costs. What is the minimum output level, if Grünberg wants to reach a target operating profit
During June, Orion purchased 160,000 pounds of direct material at a total cost of $304,000. Compute the direct material price variance for June
Brenda has been tasked with creating the cash flow statement for her company. What would total cash from operations be for the year?
Provide examples of products that EEC might offer for which a process costing system would be appropriate.
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