Explanation: Windshield department is working at excess capacity and if it is not able to sell it all production then it will cost it a lot. Since, variable cost is $200 then it should not accept any price below it and the market price is $450, it means it can get maximum of $450 for its windshield. It means it should sell its windshield between $200 and $450. Hence, windshield department can sell windshield at a transfer price range of $200 to $450.

Question

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Answer 1

Question

Chapter 22, Problem 18QS

Transfer price:

Sometime when a company is very huge they manufacture one part for their further manufacturing process and to sell outside as well. So, the price at which the one department sells goods to other department of the same company is called transfer price.

To explain: Transfer price for transferring goods from one department to another.

To determine

Explanation:

Windshield department is working at excess capacity and if it is not able to sell it all production then it will cost it a lot. Since, variable cost is $200 then it should not accept any price below it and the market price is $450, it means it can get maximum of $450 for its windshield. It means it should sell its windshield between $200 and $450.

Hence, windshield department can sell windshield at a transfer price range of $200 to $450.

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Which accounting principle requires the recording of expenses in the same period as the revenues they help to generate?a) Revenue Recognition Principleb) Matching Principlec) Conservatism Principled) Cost Principleexpla

I am looking for the correct answer to this general accounting problem using valid accounting standards.

Which accounting principle requires the recording of expenses in the same period as the revenues they help to generate?a) Revenue Recognition Principleb) Matching Principlec) Conservatism Principled) Cost Principle

Answer 2

Question

Chapter 22, Problem 18QS

Transfer price:

Sometime when a company is very huge they manufacture one part for their further manufacturing process and to sell outside as well. So, the price at which the one department sells goods to other department of the same company is called transfer price.

To explain: Transfer price for transferring goods from one department to another.

To determine

Explanation:

Windshield department is working at excess capacity and if it is not able to sell it all production then it will cost it a lot. Since, variable cost is $200 then it should not accept any price below it and the market price is $450, it means it can get maximum of $450 for its windshield. It means it should sell its windshield between $200 and $450.

Hence, windshield department can sell windshield at a transfer price range of $200 to $450.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 22, Problem 18QS

Transfer price:

Sometime when a company is very huge they manufacture one part for their further manufacturing process and to sell outside as well. So, the price at which the one department sells goods to other department of the same company is called transfer price.

To explain: Transfer price for transferring goods from one department to another.

To determine

Explanation:

Windshield department is working at excess capacity and if it is not able to sell it all production then it will cost it a lot. Since, variable cost is $200 then it should not accept any price below it and the market price is $450, it means it can get maximum of $450 for its windshield. It means it should sell its windshield between $200 and $450.

Hence, windshield department can sell windshield at a transfer price range of $200 to $450.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 22, Problem 18QS

Transfer price:

Sometime when a company is very huge they manufacture one part for their further manufacturing process and to sell outside as well. So, the price at which the one department sells goods to other department of the same company is called transfer price.

To explain: Transfer price for transferring goods from one department to another.

To determine

Explanation:

Windshield department is working at excess capacity and if it is not able to sell it all production then it will cost it a lot. Since, variable cost is $200 then it should not accept any price below it and the market price is $450, it means it can get maximum of $450 for its windshield. It means it should sell its windshield between $200 and $450.

Hence, windshield department can sell windshield at a transfer price range of $200 to $450.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 22, Problem 18QS

Transfer price:

Sometime when a company is very huge they manufacture one part for their further manufacturing process and to sell outside as well. So, the price at which the one department sells goods to other department of the same company is called transfer price.

To explain: Transfer price for transferring goods from one department to another.

To determine

Explanation:

Windshield department is working at excess capacity and if it is not able to sell it all production then it will cost it a lot. Since, variable cost is $200 then it should not accept any price below it and the market price is $450, it means it can get maximum of $450 for its windshield. It means it should sell its windshield between $200 and $450.

Hence, windshield department can sell windshield at a transfer price range of $200 to $450.

Answer 6

Chapter 22, Problem 18QS

Transfer price:

Sometime when a company is very huge they manufacture one part for their further manufacturing process and to sell outside as well. So, the price at which the one department sells goods to other department of the same company is called transfer price.

To explain: Transfer price for transferring goods from one department to another.

To determine

Explanation:

Windshield department is working at excess capacity and if it is not able to sell it all production then it will cost it a lot. Since, variable cost is $200 then it should not accept any price below it and the market price is $450, it means it can get maximum of $450 for its windshield. It means it should sell its windshield between $200 and $450.

Hence, windshield department can sell windshield at a transfer price range of $200 to $450.

Answer 7

Chapter 22, Problem 18QS

Transfer price:

Sometime when a company is very huge they manufacture one part for their further manufacturing process and to sell outside as well. So, the price at which the one department sells goods to other department of the same company is called transfer price.

To explain: Transfer price for transferring goods from one department to another.

To determine