Discussthe transfer pricing and elaborate

Assignment Help Accounting Basics

Reference no: EM132045115

Question: The TMA Questions

PART A: Carle Cash Budget

Required: a. Prepare a monthly cash budget showing the estimated cash receipts and cash payments for August, September and October, and the cash balance at the end of each month. Using your cash forecast explaining whether she will be able to repay the $160,000.

PART B: Transfer Pricing and Variances

Required: Kamal wishes to assess the situation prior to finalizing his recommendations as he plans to present his findings during next week board meeting. As a consultant, he asked you to:

1. Discussthe transfer pricing and elaborate on whether the Assembly Centre should buy tires from inside or outside the firm. Show your workings (130 words)

2. Based on your answer and analysis in the previous requirement, provide a proper transfer price.Justify your answer.(100 words)

3. The Tires Centre had a capacity of 80,000 tires per year, and the Assembly Centre use around 180,000 tires per year. The Tires center could sell all of its production externally for $130, based on these circumstances provide a recommendation for Greta Company whether these two centers should buy/sell internally or externally. Justify your answer. (50 words)

4. Explain why setting transfer prices by Greta can be controversial when a product is being transferred between two profit centers. (130 words)

5. The Accountant of Greta Company provided youthe following information concerning another department, that produces milk and yogurt:

6. Discuss the performance of the company for the past year. Show your workings. (400 words)

Information related to above question is enclosed below:

Attachment:- B321TMA-3-2017-2018.rar

Reference no: EM132045115

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