Journal Entries for Transfer Pricing Terra Firma Construction Company has two operating divisions. A precast concrete division
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Journal Entries for Transfer Pricing Terra Firma Construction Company has two operating divisions. A precast concrete division manufactures building parts out of concrete. These parts are shipped to building sites and assembled on the site. The company also has a site construction division that constructs buildings from the precast concrete parts. The precast concrete division transferred units that cost $800,000 to a construction site operated by the site construction division. The units were transferred at a price of $950,000.
Required: What journal entries would be required to record the transfer of the parts on the books of each division?
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