Exercise 6-3 (Algo) Allocating transaction price [LO6-4] Video Planet (VP) sells a big screen TV package consisting of a 60-inch plasma TV, a universal remote, and on-site installation by VP staff. The installation includes programming the remote to have the TV interface with other parts of the customer's home entertainment system. VP concludes that the TV, remote, and installation service are separate performance obligations. VP sells the 60-inch TV separately for $1,575, sells the remote separately for $210, and offers the installation service separately for $315. The entire package sells for $2,000. Required: How much revenue would be allocated to the TV, the remote, and the installation service? (Do not round intermediate calculations.) Item Description TV Remote Installation Total revenue $ Allocated Revenue 0
Q: Some of the information found on a detail inventory card for Coronado Inc. for the first month of…
A: Formula Average Cost per Unit = Total Cost of Purchase Unit / Number of units
Q: Month. Units January 10,230 March 5,450 February 8,200 April Month Units 4,290 Each unit requires 5…
A: The material purchases budget indicates the information for the cost of materials to be purchased.…
Q: Briefly explain your understanding of exempt income and state twelve (12) types of exempt income…
A: Exempt income refers to income that is not subject to taxation under the relevant tax laws or…
Q: ! Required information Exercise 6-5 Changes in Variable Costs, Fixed Costs, Selling Price, and…
A: Given, The advertising budget increased by $9200 The sales increase by $20,250
Q: percent tax rate. Given the following pre-tax amounts, what would be the income tax expense reported…
A: For ascertaining the income tax liability of any tax payer, the pre-tax amounts of the business…
Q: Please Explain Proper Step by Step and Do Not Give Solution In Image Format And Fast Answering…
A: A sales budget is a financial strategy that describes how much money a business expects to make from…
Q: Prepare the journal entry to record the sale of the building after having used the revaluation model…
A: Under the revaluation method, the asset is revalued first and then the entry for sales would be…
Q: Swifty and Miller Manufacturing is trying to determine the equivalent units for conversion costs…
A: The Numerical has covered the concept of Equivalents Units for Conversion Cost. In the next step, we…
Q: ow Unit-level costs $285,000 Fixed costs $75,000 Total costs (a) $360,000 Markup (ax0.25) 90,000…
A: Answer : a. Contribution margin per unit Contribution margin per unit = Special order price - Unit…
Q: a. Compute the predetermined factory overhead rate. Round your answer to the nearest cent. per…
A: Applied overhead is determined on the basis of predetermined overhead rate. Theses overhead rates…
Q: Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per…
A: Contribution Margin - The contribution margin represents the incremental money generated for each…
Q: 1.) Explain the effects of an increase in the volume of activity on the following costs. (Assume…
A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…
Q: More info Nov 30 Wrote off as uncollectible the $1,200 account receivable from Cheap Carpets and the…
A: Allowance for Doubtful Accounts - The allowance for doubtful accounts is calculated based on the…
Q: With multiple products in a value stream, unit cost will increase if Group of answer choices more…
A: A value stream is a series of steps that are taken to deliver a product or service to the end…
Q: Information on Kwon Manufacturing’s activities for its first month of operations follows: Purchased…
A: Job order costing system and Process order costing system is used under cost accounting for the…
Q: Adger Corporation is a service company that measures its output based on the number of customers…
A: Revenue variance is the difference between the actual result and the flexible budget. If the actual…
Q: Jennifer transfers properties to Mump Co. in an exchange that meets all the requirements of Code…
A: The answer is given below
Q: Question Content Area Disposal of Fixed Asset Perfect Auto Rentals sold one of its cars on January…
A: A journal entry refers to a written record of a personal reflection, thought, or experience. It is a…
Q: Columbus Industries makes a product that sells for $30 a unit. The product has a $22 per unit…
A: Break Even Point :— It is the point of production where total cost is equal to total revenue. At…
Q: Using the information provided in the picture, complete the calculation of accounting ratios and…
A: Ratio analysis is the method of analysis of the financial statements of the entity which analyzes…
Q: - Special Journals and Subsidiary Ledgers: Purchases and C nals Marilyn Pantaleon: Attempt 1 1…
A: The net purchases is calculated after adjustment of purchase return allowance and discount. The…
Q: Crane adheres to ASPE. Selected information from Crane Corp's 2023 accounting records is as follows:…
A: Cash Flow statement was used to find out the cash earned and spent on various activities. Cash Flow…
Q: Aleutian Company produces two products: Rings and Dings. They are manufactured in two departments:…
A: Formula : Overhead rate = Estimated overhead / Estimated labor hour
Q: Question 10 How many Gallon Equivalents would it take to drive Model V to its maximum car range?…
A: Gallon Equivalent = Max. Miles on 1 charge / Miles per Gallon Equivalent
Q: What is the minimum cost of crashing the following project that Roger Solano manages at Slippery…
A: The critical path is that path which takes the longest time from start to finish to complete the…
Q: The following is balance sheet information for MELANSON Ltd: 2021 $ 220 80 60 20 Assets Cash A/R Inv…
A: Statement of Cash Flow - The statement of cash flows starts with the beginning cash balance, adds…
Q: Intra-Spect Mining Co. acquired mineral rights for $85,000,000. The mineral deposit is estimated at…
A: Depletion expenses is also expenses charged in the profit and loss account. It is charged on natural…
Q: Given the following information, determine the activity rate for setups. Budgeted Activity Activity…
A: Activity-based costing is used to allocate overhead expenses on the basis of activity rates. Other…
Q: Norman is calculating the company's total overhead variance for April. He knows the company paid…
A: Total Overhead Variance :— It is the difference between standard overhead cost for actual production…
Q: Noncontrolling interest and intercompany sale of depreciable assets Assume on January 1, 2018, a…
A: Correct answer will be d. $16200 Because, the unrealised profit will be deducted from the income of…
Q: Which of the following bases is the most appropriate for the appointment of rent and rates expenses?…
A: Overhead means the amount of expenses incurred indirectly to produce the goods. These expenses can…
Q: ultiple department rate system for allocating overhead. Overhead Total Direct Labor Hours DLH…
A: Answer : Factory overhead rate = Total overhead / Total direct labor hour Total overhead = Painting…
Q: The bookkeeper for Nevado Company has prepared the following trial balance: Nevado Company Trial…
A: Trial balance means the statement prepared from ledger account where all debit and credit balance…
Q: Suppose a company signs a three-year lease agreement. The lease payments have a present value of…
A: The accounting equation states that assets equal to sum of liabilities and equity. The lease…
Q: The management of Roberts Corporation is investigating automating a process. Old equipment, with a…
A: Simple Rate of Return : The simple rate of return is also known as accounting rate of return. This…
Q: Partially completed T-accounts and additional information for Dumfries Designs for the month of…
A: The T-accounts are prepared by posting the journal entries to the specific accounts of the business.…
Q: Wildhorse Company's record of transactions concerning part X for the month of April was as follows.…
A: Perpetual inventory system is the one wherein the inventory records are prepared on day to day basis…
Q: Required: a. How much of the unit product cost shown above is relevant in the decision of whether to…
A: a. The relevant costs in the decision of whether to make or buy the part are the costs that will…
Q: Nittany Company uses a periodic inventory system. At the end of the annual accounting period,…
A: There are two methods of verification of materials.They are periodic inventory system and perpetual…
Q: Scrappers Supplies tracks the number of units purchased and sold throughout each accounting period…
A: Inventory can be valued using various methods -First-in First-Out Method - Under the First-in…
Q: Sunland Company is a multiproduct firm. Presented below is information concerning one of its…
A: Inventory management is critical for businesses of all sizes, as it plays an essential role in…
Q: P16-2. Debt Investments, Trading. Freder Software Group acquired $1,550,000 par value, zero coupon,…
A: Honor Code- Since you have posted a question with multiple sub-parts, we will provide the solution…
Q: basis. On January 1 of Year 5, Ohio changed to dollar-value LIFO for external reporting and income…
A: LIFO (Last in first out) This method is based on the idea that the most recent purchases in your…
Q: During Heaton Company's first two years of operations, it reported absorption costing net operating…
A: Variable costing may deliver a different amount for net income than the absorption costing method.…
Q: Required: If all awards are granted, acquired, vested, and forfeited evenly throughout the year,…
A: Given in the question: The vesting period is 5 Years The assumption which is required to be made is…
Q: Kando Company currently pays $11 per unit to buy a part for a product it manufactures. Instead,…
A: Making the choice to create a product locally versus acquiring it from a third-party vendor is…
Q: On September 12, 3,000 shares of Denver Company’s common stock are acquired at a price of $40 per…
A: Under cost method of investment, no income from investee entity is recorded by the investor entity…
Q: PROBLEM 5-23 CVP Applications; Contribution Margin Ratio: Degree of Operating Leverage LO5-1, LO5-3,…
A: Notes : Contribution Margin ratio = Contribution Margin/ Sales Break even sales:- At the level of…
Q: Zebra Enterprises is in the business of manufacturing iron buckets. The firm is headquatered in…
A: Total working capital required = Raw materials + Work-in-progress + Finished goods + Credit allowed…
Q: The sales return reserve reflects an estimate of sales returns based on projected merchandise…
A: A sales returns reserve, also known as a sales return provision or an allowance for sales returns,…
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
- rtainment Video Planet (VP) sells a big screen TV package consisting of a 60-inch plasma TV, a universal remote, and on-site installation by VP Winterface with other parts of the customer's home staff The installation includes programming the remote to have t system VP concludes that the TV, remote, and installation service are separate performance obligations VP sells the 60-inch TV the package for $2.300 VP does not sell the separately for $1.950 and sells the remote separately for $200, the installation service VP also estimates that installation service separately Vis aware that other similar provide the installation service. VP typically charges 30% ncurs approximately $200 of compensation and other costs t above cost on similar sales Required: 1 to 3. Calculate the stand-alone selling price of the installation service using each of the following approaches Adued market assessment Expected cost plus margin Residual 1,900Check Exercise 6-15 (Algo) Approaches for estimating stand-alone selling prices (LO6-6) Video Planet (VP) sells a big screen TV package consisting of a 60-inch plasma TV, a universal remote, and on-site installation by VP staff. The installation includes programming the remote to have the TV interface with other parts of the customer's home entertainment system. VP concludes that the TV, remote, and installation service are separate performance obligations. VP sells the 60-inch TV separately for $2,110 and sells the remote separately for $280, and offers the entire package for $2,620. VP does not sell the installation service separately. VP is aware that other similar vendors charge $330 for the installation service. VP also estimates that it incurs approximately $280 of compensation and other costs for VP staff to provide the installation service. VP typically charges 40% above cost on similar sales. ok ht nt Required: 1. to 3. Calculate the stand-alone selling price of the…Exercise 6-15 (Algo) Approaches for estimating stand-alone selling prices [LO6-6] Video Planet (VP) sells a big screen TV package consisting of a 60-inch plasma TV, a universal remote, and on-site installation by VP staff. The installation includes programming the remote to have the TV interface with other parts of the customer's home entertainment system. VP concludes that the TV, remote, and installation service are separate performance obligations. VP sells the 60-inch TV separately for $1,790, sells the remote separately for $120, and offers the entire package for $1,980. VP does not sell the installation service separately. VP is aware that other similar vendors charge $170 for the installation service. VP also estimates that it incurs approximately $120 of compensation and other costs for VP staff to provide the installation service. VP typically charges 50% above cost on similar sales. Required: 1. to 3. Estimate the stand-alone selling price of the installation service using…
- II - Single Performance Obligation - Polnt in Time vs. Over Time Anton Video Tech sells the Play Station Portable (PSP) game-box, a gaming console. A PSP game-box is only a gaming module and includes no other goods or services. When should Anton recognize revenue for the following sale of 200 PSP games-boxes to Robcom Computers? • December 20, 20x6: Robcom Computers orders 200 games-boxes at a price of P7,600 each, promising payment within thirty (30) days after delivery. • January 1, 20x7: Anton delivers 200 PSP game-boxes to Robcom Computers, and title to the PSP game-boxes transfers to Robcom Computers. • January 25, 20x7: Anton receives P1,520,000 from Robcom. Required: 1. Prepare the journal entryfies) on December 20, 20x7. 2. Prepare the journal entry(ies) on January 1, 20x7. 3. Prepare the journal entry(ies) on January 25, 20x7. 4. Determine the amount of revenue from sales on December 20, 20x7. 5. Determine the amount of revenue from sales on January 1, 20x8. 6. Determine the…Sonya, Inc. (SONI) sells a big screen TV package consisting of a 60-inch plasma TV, a universal remote,and onsite installation by SONI staff. The installation includes programming the remote to have theTV interface with other parts of the customer’s home entertainment system. SONI concludes that theTV, remote, and installation service are separate performance obligations. SONI sells the 60-inch TVseparately for P17,500, sells the remote separately for P1,000 and offers the entire package P19,000.SONI does not sell the installation service separately. SONI is aware that other similar vendors chargeP1,500 for the installation service. SONI also estimated that it incurs approximately P1,000 ofcompensation and other costs for SONI staff to provide the installation service. SONI typicallycharges 40% above cost on similar sales.Estimate the stand-alone selling price of the installation service using the adjusted marketassessment approach?Problem 18-01 (Part Level Submission) Waterway Company sells tablet PCs combined with Internet service, which permits the tablet to connect to the Internet anywhere and set up a Wi-Fi hot spot. It offers two bundles with the following terms. 1. Waterway Bundle A sells a tablet with 3 years of Internet service. The price for the tablet and a 3-year Internet connection service contract is $505. The standalone selling price of the tablet is $263 (the cost to Waterway Company is $160). Waterway Company sells the Internet access service independently for an upfront payment of $296. On January 2, 2020, Waterway Company signed 100 contracts, receiving a total of $50,500 in cash. 2. Waterway Bundle B includes the tablet and Internet service plus a service plan for the tablet PC (for any repairs or upgrades to the tablet or the Internet connections) during the 3-year contract period. That product bundle sells for $607. Waterway Company provides the 3-year tablet service plan as a…
- Question 5-price allocation Red Windows manufactures and sells custom storm windows for enclosed porches. Red also- provides installation service for the windows. The installation process does notinvolve changes in the windows, so this service can be provided by other vendors. Red enters into the following contract on 15 Jun 2020, with alocal homeowner. The customer purchases windows for a price of £7,500 and chooses Red to do the installation. Red charges the same price for the windows irrespective of whether it does the installation or not. The price of the installation service is estimated to have a fair value of £1,000. The customer pays Red £6,000 (which equals the fair value of the windows, which have a cost of £4,300) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on 15 Jul 2020, Red completes installation on 4 Aug 2020, and the customer pays the balance due. e Required Prepare the journal entries for Red on all the dates…Please no written by hand solutions Shamrock Company sells tablet PCs combined with Internet service, which permits the tablet to connect to the Internet anywhere and set up a Wi-Fi hot spot. It offers two bundles with the following terms. 1. Shamrock Bundle A sells a tablet with 3 years of Internet service. The price for the tablet and a 3-year Internet connection service contract is $464. The standalone selling price of the tablet is $229 (the cost to Shamrock Company is $172). Shamrock Company sells the Internet access service independently for an upfront payment of $290. On January 2, 2017, Shamrock Company signed 100 contracts, receiving a total of $46,400 in cash. 2. Shamrock Bundle B includes the tablet and Internet service plus a service plan for the tablet PC (for any repairs or upgrades to the tablet or the Internet connections) during the 3-year contract period. That product bundle sells for $563. Shamrock Company provides the 3-year tablet service plan as a separate…Sonya, Inc. (SONI) sells a big screen TV package consisting of a 60-inch plasma TV, a universal remote, and onsite installation by SONI staff. The installation includes programming the remote to have the TV interface with other parts of the customer’s home entertainment system. SONI concludes that the TV, remote, and installation service are separate performance obligations. SONI sells the 60-inch TV separately for P17,500, sells the remote separately for P1,000 and offers the entire package P19,000.SONI does not sell the installation service separately. SONI is aware that other similar vendors charge P1,500 for the installation service. SONI also estimated that it incurs approximately P1,000 of compensation and other costs for SONI staff to provide the installation service. SONI typically charges 40% above cost on similar sales. Estimate the stand-alone selling price of the installation service using the estimated cost plus a margin approach a. 1,400 b. 500 Estimate the…
- Waterway Company sells tablet PCs combined with Internet service, which permits the tablet to connect to the Internet anywhere and set up a Wi-Fi hot spot. It offers two bundles with the following terms. 1. Waterway Bundle A sells a tablet with 3 years of Internet service. The price for the tablet and a 3-year Internet connection service contract is $505. The standalone selling price of the tablet is $263 (the cost to Waterway Company is $160). Waterway Company sells the Internet access service independently for an upfront payment of $296. On January 2, 2020, Waterway Company signed 100 contracts, receiving a total of $50,500 in cash. 2. Waterway Bundle B includes the tablet and Internet service plus a service plan for the tablet PC (for any repairs or upgrades to the tablet or the Internet connections) during the 3-year contract period. That product bundle sells for $607. Waterway Company provides the 3-year tablet service plan as a separate product with a standalone selling…Break-even subscribers for a video service Star Stream is a subscription-based video streaming service. Subscribers pay $120 per year for the service. Star Stream licenses and develops content for its subscribers. In addition, Star Stream leases servers to hold this content. These costs are not variable to the number of subscribers, but must be incurred regardless of the subscriber base. In addition, Star Stream compensates telecommunication companies for bandwidth so that Star Stream customers receive fast streaming services. These costs are variable to the number of subscribers. These and other costs are as follows: Enter your answers in whole dollars. Server lease costs per year $ 100,000,000 Content costs per year 2,000,000,000 Fixed operating costs per year 900,000,000 Bandwidth costs per subscriber per year 15 Variable operating costs per subscriber per year 25 a. Determine the break-even number of subscribers. X subscribers b. Assume Star Stream planned to increase available…Break-even subscribers for a video service Star Stream is a subscription-based video streaming service. Subscribers pay $120 per year for the service. Star Stream licenses and develops content for its subscribers. In addition, Star Stream leases servers to hold this content. These costs are not variable to the number of subscribers, but must be incurred regardless of the subscriber base. In addition, Star Stream compensates telecommunication companies for bandwidth so that Star Stream customers receive fast streaming services. These costs are variable to the number of subscribers. These and other costs are as follows: Enter your answers in whole dollars. Server lease costs per year $ 100,000,000 Content costs per year 2,000,000,000 Fixed operating costs per year 900,000,000 Bandwidth costs per subscriber per year 15 Variable operating costs per subscriber per year 25 a. Determine the break-even number of subscribers.fill in the blank 1 subscribers b. Assume Star…