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Unformatted text preview: The foreign components ($800) can be included as the domestic conversion costs ($210) represents at least 20% ($210/$1,010) of CGS and meets the safe harbor rule. 2. What is Swallows QPAI per unit? QPAI is $370 ($1,400 $800 $210 $20). 3. Assume that Swallow incurred only $170 in production costs. What is Swallows DPGR per unit? What is Swallows QPAI per unit? As 17.5% ($170/$970) is less than 20%, the safe harbor test is not met. Therefore, DPGR and QPAI are both zero and there is no DPAD....
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- Fall '08