Use the following to answer questions:
Simmons Company's records show the following costs for Division X's output:

The units typically are transferred from Division X to Division Y, although they may be sold externally at $98 per unit.. Beginning and ending inventories are equal to zero.
-What would be the transfer price if absorption cost is used?
A) $98
B) $ 88
C) $ 75
D) $ 60

Question

Use the following to answer questions:
Simmons Company's records show the following costs for Division X's output:
  
The units typically are transferred from Division X to Division Y, although they may be sold externally at $98 per unit.. Beginning and ending inventories are equal to zero.
-What would be the transfer price if absorption cost is used?
A) $98 
B) $ 88 
C) $ 75 
D) $ 60

Quizplus · Accepted Answer

The Answer of Use the following to answer questions:
Simmons Company's records show the following costs for Division X's output:
  
The units typically are transferred from Division X to Division Y, although they may be sold externally at $98 per unit.. Beginning and ending inventories are equal to zero.
-What would be the transfer price if absorption cost is used?
A) $98 
B) $ 88 
C) $ 75 
D) $ 60

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