This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The River Falls Company has two divisions. The Cutting Division prepares timber at its sawmills. The ... (Read 50 times)

maegan_martin

  • Hero Member
  • *****
  • Posts: 532
on: Mar 6, 2021
The River Falls Company has two divisions. The Cutting Division prepares timber at its sawmills. The Coating Division prepares the cut lumber into finished wood for the furniture industry. No inventories exist in either division at the beginning of 20X5. During the year, the Cutting Division prepared 60,000 cords of wood at a cost of $720,000. All the lumber was transferred to the Coating Division, where additional operating costs of $5 per cord were incurred. The 600,000 boardfeet of finished wood were sold for $2,500,000. 

Required: 
a.  Determine the operating income for each division if the transfer price from Cutting to Coating is at cost - $12 a cord. 

b.  Determine the operating income for each division if the transfer price is $9 per cord. 

c.  Since the Cutting Division sells all of its wood internally to the Coating Division, does the manager care what price is selected? Why? Should the Cutting Division be a cost center or a profit center under the circumstances?
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by maegan_martin on Mar 6, 2021

aprice35067

  • Sr. Member
  • ****
  • Posts: 337
Reply #1 on: Mar 6, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 29% of students answer this correctly


maegan_martin

  • Member
  • Posts: 532
Reply 2 on: Mar 6, 2021
Thanks for the timely response, appreciate it

billybob123

  • Member
  • Posts: 336
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Asthma cases in Americans are about 75% higher today than they were in 1980.

Did you know?

Never take aspirin without food because it is likely to irritate your stomach. Never give aspirin to children under age 12. Overdoses of aspirin have the potential to cause deafness.

Did you know?

Hip fractures are the most serious consequences of osteoporosis. The incidence of hip fractures increases with each decade among patients in their 60s to patients in their 90s for both women and men of all populations. Men and women older than 80 years of age show the highest incidence of hip fractures.

Did you know?

The U.S. Preventive Services Task Force recommends that all women age 65 years of age or older should be screened with bone densitometry.

Did you know?

The average person is easily confused by the terms pharmaceutics and pharmacology, thinking they are one and the same. Whereas pharmaceutics is the science of preparing and dispensing drugs (otherwise known as the science of pharmacy), pharmacology is the study of medications.

Seasonal changes in biomass and growth form of benthic algae in the Eel River, California: (a) in ea Seasonal changes in biomass and growth form of benthic algae in the Eel River, California: (a) in ea
The clinical division of the abdominal region into quadrants with related organs and structures. The clinical division of the abdominal region into quadrants with related organs and structures.
Stronger threads are created by cold rolling a heat-treated bolt blank instead of cutting the ... Stronger threads are created by cold rolling a heat-treated bolt blank instead of cutting the ...
Cutting a Pocket in Pork Chops Cutting a Pocket in Pork Chops
A Platypus swimming in Broken River, Eungella National Park, Queensland, Australia. A Platypus swimming in Broken River, Eungella National Park, Queensland, Australia.
Sol Duc Falls in Olympic National Park, Washington. Sol Duc Falls in Olympic National Park, Washington.
Video: Four Giant Convection Cells oF Earth

For a complete list of videos, visit our video library