Materials used by Square Yard Products Inc in producing Division 3's product are currently purchased from outside suppliers at a cost of $5 per unit. However, the same materials are available from Division 6. Division 6 has unused capacity and can produce the materials needed by Division 3 at a variable cost of $3 per unit. A transfer price of $3.20 per unit is established, and 40,000 units of
material are transferred, with no reduction in Division 6's current sales. How much would Square Yard Products total income from operations increase?
A) $32,000
B) $112,000
C) $80,000
D) $150,000
C
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Which of the following statements about executory contracts is false?
A) Executory contracts are contracts in the process of begin filled. B) A purchase order is an example of an executory contract. C) Executory contracts are recognized as liabilities when the company receives the benefits D) Executory contracts are contingent obligations.
The terms of payment offered by the suppliers are to pay 70% in the month of purchase and 30% in the following month. Calculate the payments on account made during the first six months.
Tolga Moving Systems, Inc. has provided the following details for direct materials purchased on
account in different months.
Joint costs may be allocated to main products, but not to by-products
Indicate whether the statement is true or false
A carefully selected group of consumers who agree to participate in an ongoing online dialogue with a particular corporation is known as a(n)__________
Fill in the blanks with correct word.