Homework Help is Here – Start Your Trial Now!
Business
Accounting
The Table division of Timber Products, Inc. sells all of its output to the Finishing Division of the company. The only product of the Table division is an unfinished table line that is used by the Finishing Division. The retail price of the tables is P5,000 per table. Production quantity and cost data are as follows: Tables                          1,000 Direct materials            P450,000 Direct labor                  300,000 Factory overhead (25% variable)      300,000 Operating expenses (80% fixed)          500,000   Required: Determine the transfer price for a table using the following: Absorption costs plus 20% Variable cost Total costs plus 10%

The Table division of Timber Products, Inc. sells all of its output to the Finishing Division of the company. The only product of the Table division is an unfinished table line that is used by the Finishing Division. The retail price of the tables is P5,000 per table. Production quantity and cost data are as follows: Tables                          1,000 Direct materials            P450,000 Direct labor                  300,000 Factory overhead (25% variable)      300,000 Operating expenses (80% fixed)          500,000   Required: Determine the transfer price for a table using the following: Absorption costs plus 20% Variable cost Total costs plus 10%

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

The Table division of Timber Products, Inc. sells all of its output to the Finishing Division of the company. The only product of the Table division is an unfinished table line that is used by the Finishing Division. The retail price of the tables is P5,000 per table. Production quantity and cost data are as follows:


Tables                          1,000
Direct materials            P450,000
Direct labor                  300,000
Factory overhead (25% variable)      300,000
Operating expenses (80% fixed)          500,000
 

Required: Determine the transfer price for a table using the following:

  • Absorption costs plus 20%
  • Variable cost
  • Total costs plus 10%
Expert Solution
steps

Step by step

Solved in 2 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cost Sheet
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS