contestada

Materials used by Jefferson Company in producing Division C's product are currently purchased fromoutside suppliers at a cost of $10 per unit. However, the same materials are available from Division A. DivisionA has unused capacity and can produce the materials needed by Division C at a variable cost of $8.50 per unit. A transfer price of $9.50 per unit is negotiated and 25,000 units of material are transferred, with no reduction in Division A's current sales.

Respuesta :

The price is $12,500, as stated in the provided statement. Currently, Division C's product's raw materials are obtained from external sources at such a rate of $10 per unit by Jefferson Company.

What is bought with cash?

A business makes a cash purchase when it pays for products or services right away after ordering or receiving them. The supplier does not grant credit. Account payable is not established. Regardless whether the company utilizes accrual basis accounting or cash basis accounting, the associated expense is promptly reported to an expense account.

Is buying the same as selling?

In a sale, the transaction is finished when the payment is done the seller. In a transaction, the buyer may make a complete payment to the seller or arrange for financing with a third party, such as.

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