
International Business: The Challenges of Globalization (8th Edition)
8th Edition
ISBN: 9780133866247
Author: John J. Wild, Kenneth L. Wild
Publisher: PEARSON
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Question
Chapter 11.4, Problem 1QS4
Summary Introduction
To Determine:
The type of organizational structure tends to concentrate all international expertise in one division.
Introduction:
To carry out companies international business activities there are many different ways in which company can organize. Four most common organizational structures of international companies are: division structure, area structure, product structure and matrix structure.
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Crane Manufacturing Company uses a job order cost system and keeps perpetual inventory records.
June
1
Purchased raw materials for $16,400 on account.
8
Raw materials requisitioned by production:
$6,560
Direct
materials
Indirect
materials
820
Paid factory utilities, $1,722 and repairs for factory equipment, $6,560.
15
25
Incurred $108,000 of factory labor.
25
Time tickets indicated the following:
Direct Labor
(7,000 hrs x $12 per
hr)
$84,000
Indirect Labor
(3,000 hrs x $8 per
hr)
24,000
$108,000
- / 12.5
III
25
28
80 00
Applied manufacturing overhead to production based on a predetermined overhead rate of $7 per direct labor
hour worked.
Goods costing $18,200 were completed in the factory and were transferred to finished goods inventory.
30 Goods costing $15,200 were sold for $20,200 on account.
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International Business: The Challenges of Globalization (8th Edition)
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