DPAD_conversion_costs - $20 per unit. Each unit is sold for...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Domestic production activities deduction Conversion costs & the substantial in nature test Swallow Corporation sells portable air filtration systems by means of the Internet and direct mail orders. Most of the components are purchased from foreign suppliers at a cost of $800. Swallow supplies the remaining components and assembles the final product at a cost of $210. Swallows marketing, packaging, and shipping expenses total
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: $20 per unit. Each unit is sold for $1,400. Required : 1. What is Swallows DPGR per unit? 2. What is Swallows QPAI per unit? Assume instead that Swallow incurred only $170 in production costs. Required : 3. What is Swallows DPGR per unit? Swallows QPAI per unit? 4. How could this have been avoided?...
View Full Document

Ask a homework question - tutors are online