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
Trade discounts are offered to customers with high volume
orders in a specified date of payment. In the problem given, the estimated
price of the jacket is $50 but with 40% discount within 10 days of purchase.
Therefore, $50 * 40% = 20. The manufacturer will receive $30 which is the price
less discount.
I took the test. The answer is A. Accounts Receivable for $530.
Brainliest please?
Answer:
Decrease by $80,000
Explanation:
The journal entries are shown below;
Retained earning Dr $80,000 (8,000 shares × $10)
To Common stock $40,000 (8,000 shares × $5)
To Paid in capital in excess of par $40,000 (8,000 shares × $5)
(Being the retained earning is recorded)
So by passing this journal entry we get to know that the retained earning will decreases by $80,000
Answer:
Period cost is Office rentals and Indirect material used
Explanation:
The reason is that the office rentals are not associated with the production and has much more association with the time. The passage of time increases the rental cost which means it is a period cost. Likewise, the indirect material cost incurred is also not associated with the production and has more association with the period. Example includes the safety material used in the warehouse or cleaning material used in the accounting department or production department means that the expense is period related.
Total Period cost = $29,000 Office rentals + $320,000 Indirect material
Total Period cost = $349,000
