What is the market-based transfer price per pair of shoes

Assignment Help Accounting Basics
Reference no: EM132763060

Question: Branded Shoe Company manufactures only one type of shoe and has two divisions, the Stitching Division and the Polishing Division. The Stitching Division manufactures shoes for the Polishing Division, which completes the shoes and sells them to retailers. The Stitching Division "sells" shoes to the Polishing Division. The market price for the Polishing Division to purchase a pair of shoes is $50. (Ignore changes in inventory.) The fixed costs for the Stitching Division are assumed to be the same over the range of 40,000-103,000 units. The fixed costs for the Polishing Division are assumed to be $22 per pair at 103,000 units.
Stitching's costs per pair of shoes are:

Direct materials $11

Direct labor $9

Variable overhead $7

Division fixed costs $5

Polishing's costs per completed pair of shoes are:

Direct materials $20

Direct labor $7

Variable overhead $10

Division fixed costs $16

Required: What is the market-based transfer price per pair of shoes from the Stitching Division to the Polishing Division?

Reference no: EM132763060

Questions Cloud

List and discuss two potential sources of error : List and discuss two potential sources of error in this experiment accuracy and precision.
Calculate mole fractions of sodium thiocyanate and water : Calculate the mole fractions of sodium thiocyanate and water in this solution.
Calculate the vapour pressure of solution : You may assume that the solution is so dilute that its density is 1.00 g cm
Determine what the variable cost of goods sold is : Determine what the variable cost of goods sold is? Variable manufacturing overhead cost$3 per unit.Direct materials cost$5 per unit
What is the market-based transfer price per pair of shoes : Branded Shoe Company manufactures only one type of shoe and has two divisions, the Stitching Division and the Polishing Division. The Stitching Division.
Discuss examples of how humans utilize microbes : Discuss three examples of how humans utilize microbes and their products today. Provide a concise summary of the five basic techniques used to manipulate
What will be cash flow in each of years for daily enterprise : Daily Enterprises is purchasing a $13,000,000 machine. The machine will be depreciated using straight-line, what will be the cash flow in each of years 1 to 10?
Determine the tax deductibility of the money loss : Bank W encountered theft where its bank officer stole money from customers' accounts. When detected it was found that RM20,000 had been embezzled.
Fill in marsha balance sheet below for today date : Marsha Jones is a recent college graduate. She worked during college and managed to save $2,000 in her savings account. The balance of her checking account.

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.

  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!

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