Assume you are the department 8 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 in dollars and operating income in percentage, analyze the following funct information to determine costs that may need further investigation. Sales Cost of goods sold Gross profit Marley's Manufacturing Income Statement Month Ending August 31, 2018 Dept. A Expenses: Ubility expenses Wages expense Costs allocated from corporate Total expenses Operating income/(loss) in dollars Operating income/(loss) in percentage $22,000 10,780 $11,220 $880 5,500 2,200 $8.580 Dept. B $50,000 26,000 $24,000 $3,000 10,000 14,500 $27,500
Assume you are the department 8 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 in dollars and operating income in percentage, analyze the following funct information to determine costs that may need further investigation. Sales Cost of goods sold Gross profit Marley's Manufacturing Income Statement Month Ending August 31, 2018 Dept. A Expenses: Ubility expenses Wages expense Costs allocated from corporate Total expenses Operating income/(loss) in dollars Operating income/(loss) in percentage $22,000 10,780 $11,220 $880 5,500 2,200 $8.580 Dept. B $50,000 26,000 $24,000 $3,000 10,000 14,500 $27,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text: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 in dollars and operating income in percentage, analyze the following financu
information to determine costs that may need further investigation.
Sales
Cost of goods sold
Gross profit
Marley's Manufacturing
Income Statement
Month Ending August 31, 2018
Dept. A
Expenses:
Ubility expenses
Wages expense
Costs allocated from corporate
Total expenses
Operating income/(loss) in dollars
Operating income/(loss) in percentage
$22,000
10,780
$11,220
$880
5,500
2,200
$8.580
%
Dept. B
$50,000
26,000
$24,000
$3,000
10,000
14,500
$27,500
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