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Title: Mega Petroleum has two divisions, each operating as a profit center. The transportation division ... Post by: skully on Feb 13, 2017 Mega Petroleum has two divisions, each operating as a profit center. The transportation division purchases crude oil in Venezuela, and transports it from Venezuela to Chicago, Illinois. The reefing division process crude oil into gasoline. The cost-based transfer price is 106% of full cost. The contract price of $75 per barrel of crude oil is based on market price in Chicago. The market price per barrel of crude oil supplied to the refining division is $90. The managerial accountant reported the following information?
Transportation Division Variable cost per barrel of crude oil $2 Fixed cost per barrel of crude oil $4 Full cost per barrel of crude oil $6 Refining Division Variable cost per barrel of gasoline $9 Fixed cost per barrel of gasoline $7 Full cost per barrel of gasoline $16 Required Compute the cost-based transfer prices at 106% of full cost of the crude oil purchased in Venezuela, plus the transportation division's variable and fixed costs. A) $80.86 B) $82.86 C) $85.86 D) $87.86 E) $90.86 Title: Re: Mega Petroleum has two divisions, each operating as a profit center. The transportation division ... Post by: lordington on Feb 13, 2017 Content hidden
Title: Re: Mega Petroleum has two divisions, each operating as a profit center. The transportation division ... Post by: skully on Apr 7, 2017 You make it look easy lol
Thanks :thumbsup: |