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When an industry has excess capacity, market prices may drop well THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 1 AND 2. Division A sells soybean paste internally to Division B, which in turn, produces soybean burgers that sell for $5 per pound. Division A incurs costs of $0.75 per pound while Division B incurs additional costs of $2.50 per pound. 1. What is Division A's operating income per pound, assuming the transfer price of t ...

Other / Other 08 Apr 2016

The income statement of Reagan Inc. for the year aEx. 1 The general ledger of Link Company provides the following information: End of Year Beginning of Year Accounts Receivable $ 55,000 $ 94,000 Inventory 310,000 210,000 Accounts Payable 40,000 65,000 The company's net sales for the year was $2,200,000 and cost of goods sold amounted to $1,500,000. Instructions Compute the following: (a) Cash receipts from customers. (b) C ...

Other / Other 08 Apr 2016

What is the transfer price per barrel from the Production Division THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 1 THROUGH 3. Dakoil Corporation has two divisions, Refining and Production. The company's primary product is Enkoil Oil. Each division's costs are provided below: Production: Variable costs per barrel of oil $ 3 Fixed costs per barrel of oil $ 2 Refining: Variable costs per barrel of oil $10 Fixed costs pe ...

Other / Other 08 Apr 2016

The cash effects of selling goods and services 1. A statement of cash flows summarizes the operating, ____________, and ___________ activities of an entity. 2. The cash effects of selling goods and services appears in the ______________ activities section of a statement of cash flows. 3. The operating activities section of the statement of cash flows may be prepared using the ______________ method or the ______________ method. ...

Other / Other 08 Apr 2016

The degree of freedom to make decisions 1. A report which contains both financial and nonfinancial management control information is referred to as the a. total-organization report. b. unified management information system report. c. balanced scorecard. d. none of the above. 2. The formal management control system includes a. performance measures. b. mutual commitments. c. incentive plans. d. both (a) and (c). ...

Other / Other 08 Apr 2016

What action should the company president take 1. The Home Office Company makes all types of office desks. The Computer Desk Division is currently producing 10,000 desks per year with a capacity of 15,000. The variable costs assigned to each desk are $300 and annual fixed costs of the division are $900,000. The computer desk sells for $400. The Executive Division wants to buy 5,000 desks at $280 for its custom office design busine ...

Other / Other 08 Apr 2016

In computing cash payments for income taxes a1. Cost of goods sold for the year amounted to $130,000, and during the year, accounts payable ______________ by $9,000 and inventory ______________ by $5,000 resulting in cash paid to suppliers of $116,000. a2. In computing cash payments for operating expenses, a decrease in prepaid expenses is ______________ and an increase in accrued expenses payable is ______________ to (from) operatin ...

Other / Other 08 Apr 2016

Bargaining between selling and buying units 1. For each of the following, identify whether it BEST relates to market-based, cost-based, negotiated, or all types of transfer pricing. _______________ a. Bargaining between selling and buying units _______________ b. Budgeted costs _______________ c. 145% of full costs _______________ d. Internal product transfers are required if goods are available internally _______________ e. Ma ...

Other / Other 08 Apr 2016

Show how each item should be reported in the statement Ex. 1 Towson Company prepared the tabulation below at December 31, 2014. Net Income $340,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense, $43,000 Increase in accounts receivable, $50,000 Decrease in inventory, $13,000 Amortization of patent, $4,000 Increase in accounts payable, $5,600 Decrease in ...

Other / Other 08 Apr 2016

Miroz Corporation's comparative balance sheets Ex. 1 Miroz Corporation's comparative balance sheets are presented below. MIROZ CORPORATION Comparative Balance Sheets December 31 2014 2013 Cash $ 18,700 $ 22,700 Accounts receivable 24,700 22,300 Investments 25,000 16,000 Equipment 59,000 70,000 Accumulated depreciation (14,500) (10,000) Total $112,900 $121,000 Accounts payable $ 13,600 $11,100 Bon ...

Other / Other 08 Apr 2016