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Assume you are the department B manager for Mariey's Manufacturing, Mariey's operates under a cost-based transfer structure. Assume you receive the majority of your raw
Assume you are the department B manager for Mariey's Manufacturing, Mariey's operates under a cost-based transfer structure. Assume you receive the majority of your raw materials from department A, which sells only to department B (they have no outside sales). After calculating the operating income in dollars and operating income in percentage, analyze the following financial Information to determine costs that may need further investigation Marley's Manufacturing Income Statement Month Ending August 31, 2018 Dept. A Dept. o Sales $21,000 $52,000 Cost of goods sold 10,080 26,520 Gross profit $10,920 $25,480 $1,260 5,250 $2,600 10.920 14,560 2,100 Expenses: Utility expenses Wages expense Costs allocated from corporate Total expenses Operating income/(loss) in dollars Operating income/loss) in percentage Department B had an operating loss. $8,610 $28,080 96 W
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