question 154
Multiple Choice
Leslie Manufacturing reported the following: Revenue Beginning inventory of direct materials, January 1, 2015 Purchases of direct materials Ending inventory of direct materials, December 31, 2015 Direct manufacturing labor Indirect manufacturing costs Beginning inventory of finished goods, January 1, 2015 Cost of goods manufactured Ending inventory of finished goods, December 31, 2015 Operating costs $450,00020,000156,00018,00021,00042,00040,000114,00045,000150,000 What is Leslie's operating income?
Definitions:
Transfer Prices
The prices at which services, goods, or capital are exchanged between departments or divisions within the same company or between subsidiaries.
Intermediate Products
Goods that are used as inputs in the production of other goods, not intended for final consumption.
Profit Center
A branch or division of a company that is directly responsible for generating its own revenue and profits.
Division Profit
This refers to the net income generated by a specific division or segment of a larger company.