Wisconsin Company's Division X had the following historical accounting data per unit based on 5,000 units per period:
Fixed manufacturing costs were $10,000. Wisconsin transfers internally from Division X to Division Y. Wisconsin may also sell the transferred units externally for $43 per unit.
If Division X transfers 5,000 units this period at absorption cost plus 10% markup, what would be the unit transfer price?

Question

Wisconsin Company's Division X had the following historical accounting data per unit based on 5,000 units per period:
  Fixed manufacturing costs were $10,000. Wisconsin transfers internally from Division X to Division Y. Wisconsin may also sell the transferred units externally for $43 per unit.
If Division X transfers 5,000 units this period at absorption cost plus 10% markup, what would be the unit transfer price?

Quizplus · Accepted Answer

The Answer of Wisconsin Company's Division X had the following historical accounting data per unit based on 5,000 units per period:
  Fixed manufacturing costs were $10,000. Wisconsin transfers internally from Division X to Division Y. Wisconsin may also sell the transferred units externally for $43 per unit.
If Division X transfers 5,000 units this period at absorption cost plus 10% markup, what would be the unit transfer price?

Wisconsin Company's Division X Had the Following Historical Accounting Data