internally to the Packaging Division, however an intermediate market price for an unpackaged assembled unit equals $50.00. The current capacity for Cheng Company is 5,000 units. Assembly's costs are: Direct materials Direct labor Variable overhead Division fixed costs Packaging's costs unit are: Direct materials Direct labor Variable overhead Division fixed costs $15.00 per unit $ 7.00 per unit $ 3.00 per unit $7,500 $40.00 per unit $60.00 per unit $20.00 per unit $10,000 Assume the internal transfer price for a unit is 150% of total costs of the Assembly Division and 1,000 of the units are produced and transferred to the Packaging Division. Calculate the Assembly Division's Operating Income using the current transfer pricing method.

internally to the Packaging Division, however an intermediate market price for an unpackaged assembled unit equals $50.00. The current capacity for Cheng Company is 5,000 units. Assembly's costs are: Direct materials Direct labor Variable overhead Division fixed costs Packaging's costs unit are: Direct materials Direct labor Variable overhead Division fixed costs $15.00 per unit $ 7.00 per unit $ 3.00 per unit $7,500 $40.00 per unit $60.00 per unit $20.00 per unit $10,000 Assume the internal transfer price for a unit is 150% of total costs of the Assembly Division and 1,000 of the units are produced and transferred to the Packaging Division. Calculate the Assembly Division's Operating Income using the current transfer pricing method.

Name: Please do not give solution in image format thanku manufactures only o
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Description: Please do not give solution in image format thanku manufactures only one type of product and has two divisions: Assemblyand Packaging. The Assembly Division manufactures units for the Packaging Division, whichcompletes the units and sells them to ret

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter5: Support Department And Joint Cost Allocation

Section: Chapter Questions

Problem 1BE: Charlies Wood Works produces wood products (e.g., cabinets, tables, picture frames, and so on)....

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