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#1 #2 #3 Ruff Company has two divisions, Production and Distribution. The company's primary product is dog food. Each division's costs are provided below: Production:
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Ruff Company has two divisions, Production and Distribution. The company's primary product is dog food. Each division's costs are provided below: Production: Variable costs per kilogram $1.20 Fixed costs per kilogram $2.80 Distribution: Variable costs per kilogram $0.30 Fixed costs kilogram $0.20 The Distribution Division has been operating at a capacity of 4,000,000 kilograms a week and usually purchases 2,000,000 kilograms from the Production Division and 2,000,000 kilograms from other suppliers at $4.50 per kilogram. What is the transfer price per kilogram from the Production Division to the Distribution Division, assuming the method used to place a value on each kilogram of dog food is 80% of full costs? O A. $4.50 B. $0.45 C. $3.20 D. $0.36 O E. $4.00 After conducting a market research study, Static Speaker Manufacturing decided to produce a new portable speaker to complement its product line. It is estimated that the new portable speaker can be sold at a target price of $65 The annual target sales volume for portable speakers is 20,000. Static has a targeted operating income of 20% of sales. What is the target cost for each portable speaker? O A. $80 B. $52 C. $72 OD. $38 O E. $48 OMG Company uses process costing in its Manufacturing Department. At the beginning of April, it had 9,000 units in beginning work-in-process that were 55% complete with respect to conversion. During April it put 92,000 units into production and completed 89,000 good units. At April 30, there were 6,000 units in ending work-in-process that were 60% complete with respect to conversion. Direct materials are added at the beginning of the process. Inspection occurs at the end of the process and normal spoilage is 6% of good output. Costs related to the beginning inventory were $36,800 for direct materials and $28,600 for conversion costs. During the month the company issued $280,000 of direct materials and incurred $599,400 of conversion costs. Assuming OMG uses the FIFO method of process costing, the equivalent units for direct materials and conversion costs respectively for April are: O A. 87,000 units; 93,300 units. OB. 99,000 units; 94,200 units. O C. 87,000 units; 90,900 units. OD. 87,000 units; 94,200 units. O E. 92,000 units: 93,650 unitsStep by Step Solution
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