Mogi Corp manufactures one primary product, which is processed through two divisions (P & R). Cost for
Fantastic news! We've Found the answer you've been seeking!
Question:
Mogi Corp manufactures one primary product, which is processed through two divisions (P & R). Cost for each division are:
Variable cost per gallon P= $3 R= $15
Fixed cost per gallon P= $2 R= $12
*Based on production of 75,000 and 120,000 gallons for P and R respectively.
P Division produces 75,000 gallons per month. R Division used 120,000 gallons per month; of that, 75,000 galloons are purchased internally and 45,000 are purchased externally at $10 per galloon. After processing through R division, a gallon of final product can be sold for $55.
What is Mogi Corp's operating profit if all 120,000 gallons of final product can be sold for $55 per gallon?
Related Book For
Cost Accounting Foundations and Evolutions
ISBN: 978-1111971724
9th edition
Authors: Michael R. Kinney, Cecily A. Raiborn
Posted Date: