Bonita Manufacturing Inc.'s accounting records reflect the following inventories:

		Dec. 31, 2021	Dec. 31, 2022
	Raw materials inventory	$99900	$80400
	Work in process inventory	130400	145600
	Finished goods inventory	124000	115800

During 2022, Bonita purchased $949100 of raw materials, incurred direct labour costs of $124400, and incurred manufacturing overhead totalling $160200. Bonita Manufacturings cost of goods manufactured for 2022 amounted to $1238000. How much would it report as cost of goods sold for the year?

$1362400

$1246200

$1248900

$1229800

Division A produces a product that it sells to the outside market. It has compiled the following:

Variable manufacturing cost per unit	$12
Variable selling costs per unit	$3
Total fixed manufacturing costs	$158000
Total fixed selling costs	$30000
Per unit selling price to outside buyers	$57
Capacity in units per year	30000

Division B of the same company is currently buying an identical product from an outside provider for $55 per unit. It wishes to purchase 4900 units per year from Division A. Division A is currently selling 25100 units of the product per year. If the internal transfer is made, Division A will not incur any selling costs. What would be the maximum transfer price per unit that Division B would be willing to accept?

$13

$12

$55

$57

Save for Later