The company has another division A delivering two units of a component A required by division...
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The company has another division A delivering two units of a component A required by division B for the production of one unit of product B which is sold to external clients. Controlling department implemented a dual pricing system (as shown in the figure below) based on transfer prices calculated by applying cost plus method and resale price method, respectively. Not all information has been provided (as some cells are blank). e) Please fill the missing cells of the provided figure (transfer prices and costs/ revenues). Remark: Please ensure that not provided values are derived transparently. Division A Preliminary production Revenue Costs (of Division A) Profit I (A) Division A Profit-/Loss- Assignment Profit I V₁ = per unit A -10,-€ +10,- € 2 A/ unit B Corporate Centre Revenue Costs Profit 1 Profit-Loss Assignment Profit V₂ = -100,- € Division B 0,-€ End production. (B) €² per unit A Division B Revenue Costs (of Division B) Costs of Component A Profit 1 Profit-Loss- Assignment Profit 1 Transfer price v, is calculated applying resale price method 2 Transfer price v; is calculated applying cost plus method All costs of division B except the cost of the delivery of the component A 220,-€ -10.-€ +10,-€ The company has another division A delivering two units of a component A required by division B for the production of one unit of product B which is sold to external clients. Controlling department implemented a dual pricing system (as shown in the figure below) based on transfer prices calculated by applying cost plus method and resale price method, respectively. Not all information has been provided (as some cells are blank). e) Please fill the missing cells of the provided figure (transfer prices and costs/ revenues). Remark: Please ensure that not provided values are derived transparently. Division A Preliminary production Revenue Costs (of Division A) Profit I (A) Division A Profit-/Loss- Assignment Profit I V₁ = per unit A -10,-€ +10,- € 2 A/ unit B Corporate Centre Revenue Costs Profit 1 Profit-Loss Assignment Profit V₂ = -100,- € Division B 0,-€ End production. (B) €² per unit A Division B Revenue Costs (of Division B) Costs of Component A Profit 1 Profit-Loss- Assignment Profit 1 Transfer price v, is calculated applying resale price method 2 Transfer price v; is calculated applying cost plus method All costs of division B except the cost of the delivery of the component A 220,-€ -10.-€ +10,-€
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Answer Imagine the following conversation in a company presidents office He is talking with the general manager of a division selling products internally seller the general manager of a division buyin... View the full answer
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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