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andreyandreev [35.5K]
3 years ago
15

The COB Division of Northern Corp. produces and sells a product to both external customers and other Northern divisions. Per-uni

t data collected from COB's operations include: Outside sales price $800 Direct materials 350 Direct labour 75 Fixed overhead 180 If COB has excess capacity available to fulfill an inter-company order, what transfer price should be set
Business
1 answer:
svetoff [14.1K]3 years ago
8 0

Answer:

$425

Explanation:

Data provided as per the question

Direct material = $350

Direct labor = $75

The computation of transfer price should be set is shown below:-

Transfer price should be = Direct materials + Direct labor

= $350 + $75

= $425

Note :- The minimum transfer price shall be "Variable Rate" if there is an excess capacity to produce for internal transfer.

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On January 1, Year 1, McClurg Corporation issues 5%, 11-year bonds with a face amount of $70,000 for $76,180. The market interes
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The journal entry for the issuance of the bond is shown below:

Explanation:

The entry to be posted on Jan 1

Cash A/c..............................................Dr   $76,180

    Premium on bonds payable A/c........Cr     $6,180

    Bonds Payable A/c..................................Cr   $70,000

As bonds issued, so cash is increasing and any increase in cash is debited. Therefore, the cash account is debited. But the bonds issued at a premium so the premium on the bonds payable will be credited. And bonds payable account is credited.

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At the beginning of her current tax year, Angela purchased a zero-coupon corporate bond at original issue for $30,000 with a yie
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Answer:

She will report an interest income of $1,827 for this year.

Explanation:

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4 0
3 years ago
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Why should a notary signing agent learn all about the closing documents in a loan package if they are not allowed to provide adv
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Explanation:

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3 years ago
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The direct write-off method is not allowed under GAAP because it violates the principle expense recognition (matching) principle.

A direct write-off is an accounting method by which uncollectible accounts received are written off as bad debts.

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