I'm pretty sure it's D- All of the above
Answer:
a. $11
b. $35
c. If the transferring division does not have excess capacity,this would mean that some units that could have been sold externally would be transferred internally and this creates an opportunity cost. Opportunity costs increase the transfer price.However no opportunity cost exist if transferring division has excess capacity and hence a lower transfer price.
Explanation:
The minimum acceptable price is the price that is acceptable to the transferring division and out of a range of acceptable prices, it is that which would be the best for the company.
When there is excess capacity.
Note : No opportunity costs would exist.
Minimum acceptable price = Variable Cost - Internal Savings + Opportunity Cost
= $11
When there is excess capacity.
Note : Opportunity costs would exist.
Minimum acceptable price = Variable Cost - Internal Savings + Opportunity Cost
= $11 + ($35 - $11 )
= $35
Why Capacity of transferring division (Small Motor Division) has an effect on the transfer price.
If the transferring division does not have excess capacity,this would mean that some units that could have been sold externally would be transferred internally and this creates an opportunity cost. Opportunity costs increase the transfer price.However no opportunity cost exist if transferring division has excess capacity and hence a lower transfer price.
The effect on General Ledger with the creation of the new inventory item "Birdbath" on March 15, when beginning inventory of 25 units at a cost per unit of $23.82 recorded by Erin, is the overstatement of the Ending Inventory by $595.50.
Data and Calculations:
Date Description Units Unit Cost Total Cost
March 15 Beginning Inventory 25 bags $23.82 $595.50
April 20 Purchase 80 bags $8.00 $640.00
June 12 Purchase 75 bags $8.25 $618.75
June 15 Sale 125 bags
Ending inventory in units (correct balance) = 30 bags (155 - 125)
Ending inventory in units (per records) = 55 bags
Thus, the overstatement of the Ending Inventory by $595.50 makes the General Ledger balances to disagree.
Learn more: brainly.com/question/16508726
Answer: 2.wear common protective or safety equipment
3.face-to-face discussions
4.exposed to hazardous equipment
5.spend time using hands to handle, control, or feel objects, tools, or controls
Explanation: i just took the test :)
Answer:
The answer is c more than $55,000 but less than or equal to $65,000
Explanation:
EOQ = √2DS/H
Demand = 11,000 × 36,000 = 396,000,000
Order Cost = 1$8,000
Holding Cost = 20/100 × 18,000
= 3,600
EOQ = √ 2 × 18,000 × 396,000,000/3,600
EOQ = √ 14,256,000,000,000/3,600
EOQ =√ 3,960,000,000
EOQ = $62,928.53
The answer is more than $55,000 but less than equal to $65,000