Question

Division X supplies partially completed units of product to division Y. The divisions' negotiated price is $30 per unit. Assuming Division X completed and transferred 3,000 units to division Y, the total transfer price on this transaction is:

Answer 1

$90,000

Step-by-step explanation:

Data provided in the question

Negotiated price per unit = $30

And, the completed and transferred units is 3,000 units

So by considering the above information, the total transfer price is

= The completed and transferred units × Negotiated price per unit

= 3,000 units × $30

= $90,000

By multiplying the Negotiated price per unit with the completed and transferred units the total transfer price could arrive