Answer:
Minimum transfer price = $21
Explanation:
<em>Transfer price is the price at which goods are exchange between branches or divisions of the same group</em>
<em>Where a division is operating at the less than the existing capacity, to optimist the group profit, the minimum transfer price should be set as follows</em>
Minimum transfer price = Variable cost
Note that the fixed of $12 per unit (i.e 33-21) is irrelevant for this purpose, whether or not Hinges produces, it will be incurred either way.
It is worthy of note that there is no opportunity cost associated with any transfer to the Doors division because Hinges is currently having excess capacity.
Therefore, any offering price equal to or above the variable cost of $21 would be acceptable and optimize the group profit.
Hence, the minimum transfer price = $21
Answer:
b. partnership
Explanation:
Partnership refers to a form of business wherein two or more individuals agree to carry out a business mutually agreeing to share profits and losses in agreed ratio as per the clauses specified in the partnership deed.
Also, upon retirement or death of a partner, the partnership firm gets dissolved and requires to be reconstituted again with necessary changes being carried out in clauses and specified profit sharing ratio in the partnership deed.
Another significant feature of partnership being, except for limited liability partnership, in all other forms of partnerships, the partners are exposed to unlimited risk.
Answer:$4650
Explanation:
The cost that is recoverable is $30 per hour that was agreed as the hour to be spent in learning the soft ware. The sunk cost it's an irrecoverable cost that does influence decision making. When the agreed leaning cost of $30 per hr for 45hr of $1350 is deducted from the asking price of $6000 we have the $4650
Answer:
$251,000
Explanation:
Calculation to determine the amount of cost of goods manufactured for the year
Using this formula
Cost of goods manufactured=Debit to Finished Goods+Credit to Work in Process
Let plug in the formula
Cost of goods manufactured =$226,000+$25,000
Cost of goods manufactured =$251,000 (entry f)
Therefore the amount of cost of goods manufactured for the year is $251,000 (entry f)
