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(4pts) 23) Illinois Mower Manufacturing Company has three divisions. Engine components are transferred from Components to Assembly. Assembled engines are transferred from Assembly to the
(4pts) 23) Illinois Mower Manufacturing Company has three divisions. Engine components are transferred from Components to Assembly. Assembled engines are transferred from Assembly to the Mower Division. Costs for each division are given below. Mowers are sold on a competitive outside market for $125. There are no outside markets for engine components or assembled engines. Division Name Components Assembly Mower Total variable costs $50 per $10 per engine $100 per mower package of plus transfer price plus transfer price components paid to Components paid to Assembly Total division fixed costs $55,000 $55.000 $110.000 This period, Components sends Assembly 5,000 packages of engine components. Using a market based transfer price, determine the amount Assembly would pay Components: is based on the Component's division's variable cost is based on the Component's division's full absorption cost is the $125 market price of the mowers Cannot be determined from the information provided (4pts 19) Black Horse Transportation's sales budget for the first quarter follows: January February March $125,000 300,000 290,000 All sales are on account (credit) with 50% collected in the month of sale, 30% collected in the following month after sale, and 20% collected in the second month after sale. There are no Incollectable accounts. The Accounts Receivable balance that would appear on the Balance Sheet for March is: $142,500 $205,000 $150,500 $105,000
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