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Assume you are the department B manager for Marley's Manufacturing. Marley's operates under a cost-based transfer structure. Assume you receive the majority of your raw
Assume you are the department B manager for Marley's Manufacturing. Marley'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 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. B Sales $21,000 $52,000 10,080 26,520 $10,920 $25,480 Cost of goods sold Gross profit Expenses: Utility expenses Wages expense Costs allocated from corporate Total expenses $3,120 $1,050 5,040 9,880 1,890 15,080 $7,980 $28,080 Operating income/(loss) in dollars Operating income/loss) in percentage
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