Question
CWB Inc. has two divisions: the vehicle division and the battery division. The vehicle division currently purchases batteries internally from the battery division. The transfer
CWB Inc. has two divisions: the vehicle division and the battery division. The vehicle division currently purchases batteries internally from the battery division. The transfer price is determined by the cost-plus method: the full manufacturing cost plus a 12% markup.
| Battery Division (production volume: 20,000 batteries ) | |
Direct material | $44,500 |
Direct labor | $32,915 |
Manufacturing overhead | $60,089 |
SG&A | $20,047 |
Based on the costing sheet for the 20,000 batteries above, how much is the transfer price for one unit of the battery?
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Financial Reporting And Analysis
Authors: Lawrence Revsine, Daniel Collins
4th Edition
0073527092, 978-0073527093
