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Bernie Manufacturing Company Has Two Divisions, X and Y

Question 8

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Bernie Manufacturing Company has two divisions, X and Y.Division X prepares the steel for processing.Division Y processes the steel into the final product.No inventories exist in either division at the beginning or end of 2011.During the year, Division X prepared 80,000 lbs.of steel at a cost of $800,000.All the steel was transferred to Division Y where additional operating costs of $5 per lb.were incurred.The final product was sold for $3,000,000.
Required:
Bernie Manufacturing Company has two divisions, X and Y.Division X prepares the steel for processing.Division Y processes the steel into the final product.No inventories exist in either division at the beginning or end of 2011.During the year, Division X prepared 80,000 lbs.of steel at a cost of $800,000.All the steel was transferred to Division Y where additional operating costs of $5 per lb.were incurred.The final product was sold for $3,000,000. Required:

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