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Pontiac Company's Division Y had the following historical accounting data per unit based on 6,000 units per period:

  • Direct labor .
  • $14
  • Direct materials 26
  • Variable manufacturing overhead 8
  • Variable selling expenses 10

Fixed manufacturing costs were $75,000. Pontiac transfers internally from Division Y to Division Z. Pontiac may also sell the transferred units externally for $85 per unit. If Division Y transfers 6,000 units this period at absorption cost plus 10% markup, what would be the unit transfer price?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9977401

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