Hopner Products enters into a contract with Tulles to sell three different products. The total transaction...

Question

Question

Hopner Products enters into a contract with Tulles to sell three different products. The total transaction price is $390,000.

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

product	forcast cost	cost %	margin allocation	allocated transaction price
X	100000	29%	14706	114706
Y	90000	26%	13235	103235
Z	150000	44%	22059	172059
Total	340000	100%	50000	390000
price	390000
margin	50000

transaction price allocated = forcast cost+margin allocated
Z transaction price allocted will be $172059 wich is approximatly
equal to 172065 option given in question
Therefore Option "A" is CORRECT

Add a comment

Answer 2

Similar Homework Help Questions

Hopner Products enters into a contract with Tulles to sell three different products. The total transaction...

Hopner Products enters into a contract with Tulles to sell three different products. The total transaction price is $310,000. Each of the products is a separate performance obligation. Based on the information presented in the to table, what is the allocated transaction price of product Z using the adjusted market assessment approach? K(Round intermediary percentages to the nearest hundredth percent, and round your final answer to the nearest whole number.) is Product ΧΣΝ Standalone PriceM arket Price $130,000 $110,000 $115,000...
Hepner Products enters into a contract with Tullis to sell three different products. The total price...

Hepner Products enters into a contract with Tullis to sell three different products. The total price is $350,000 Each of the products is a separate performance obligation. Based on the information presented in the table, what is the allocated transaction price of product Z using the adjusted market assessment approach? (Round intermediary percentages to the nearest hundredth percent, and round your final answer to the nearest whole number.) Product Standalone Price Market Price X $150,000 $130,000 Y $125,000 $135,000 Z...
Hopner Products enters into a contract with Tulles to sell three different products. Each of the...

Hopner Products enters into a contract with Tulles to sell three different products. Each of the products is a separate performance obligation. Based on the information presented in the table, what is the standalone price of product Z using the residual approach? $415,000 Standalone Price $150,000 $125,000 Not Available Transaction Price Product OA, $255,000 OB. $290,000 O C. $115,000 D. $140,000

Tullis Construction enters into a long-term fixed price contract to build an office tower for $10.400.000....

Tullis Construction enters into a long-term fixed price contract to build an office tower for $10.400.000. In the first year of the contract Tullis incurs $2,250,000 of cost and the engineers determined that the remaining costs to complete the project are $4,000,000. Tullis billed $3,700,000 in year 1 and collected $3,500,000 by the end of the year. How much gross profit should Tullis recognize in Year 1 assuming the use of the percentage-of-completion method? (Round any intermediary percentages to the...
Print Platon Allocating Transaction Price to Performance Obligations and Recording Sales Value Dealership in markets and...

Print Platon Allocating Transaction Price to Performance Obligations and Recording Sales Value Dealership in markets and sells the vehicles to real customers. Along with a new vehicle purchase, a customer will receive a free annual maintenance contract for one year from the date of purchase. The standalone seling price of a vehicles 130,000 and the standalone selling price for the annual maintenance contract is 3500 During October 2020, Valur Dealership Inc sold vehicles for 530,250 per vehicle, each with a...
The Kenton Company processes unprocessed milk to produce two products, Butter Cream and Condensed Milk. The...

The Kenton Company processes unprocessed milk to produce two products, Butter Cream and Condensed Milk. The following information was collected for the month of June: Direct Materials processed: 27,500 gallons (after shrinkage) Production: Butter Cream 12,500 gallons Condensed Milk 15,000 gallons Sales: Butter Cream 12,000 gallons Condensed Milk 14,500 gallons Sales Price: Butter Cream $4.50 per gallon Condensed Milk $8.00 per gallon Separable costs in total: Butter Cream $13,000 Condensed Milk $35,600 The cost of purchasing the of unprocessed milk and...

The Kenton Company processes unprocessed milk to produce two products, Butter Cream and Condensed Milk. The...

The Kenton Company processes unprocessed milk to produce two products, Butter Cream and Condensed Milk. The following information was collected for the month of June: Direct Materials processed: 22,500 gallons (after shrinkage) Production: Butter Cream 12,000 gallons Condensed Milk 10,500 gallons Sales: Butter Cream 11,500 gallons Condensed Milk 10,000 gallons Sales Price: Butter Cream $3.50 per gallon Condensed Milk $9.00 per gallon Separable costs in total: Butter Cream $15,000 Condensed Milk $35,800 The cost of purchasing the of unprocessed milk and...
The Green Company processes unprocessed goat milk up to the split-off point where two products, condensed...

The Green Company processes unprocessed goat milk up to the split-off point where two products, condensed goat milk and skim goat milk result. The following information was collected for the month of October: Direct Materials processed: 105,000 gallons (after shrinkage) Production: Condensed goat milk 45,500 gallons Skim goat milk 59,500 gallons Sales: Condensed goat milk $4.50 per gallon Skim goat milk $4.00 per gallon The costs of purchasing the of unprocessed goat milk and processing it up to the split-off point to yield a total of 105,000...
On January 1, 2020, Flounder Co. enters into a contract to sell a customer a wiring...

On January 1, 2020, Flounder Co. enters into a contract to sell a customer a wiring base and shelving unit that sits on the base in exchange for $2,900. The contract requires delivery of the base first but states that payment for the base will not be made until the shelving unit is delivered. Flounder identifies two performance obligations and allocates $1,160 of the transaction price to the wiring base and the remainder to the shelving unit. The cost of...

On January 1, 2020, Novak Co. enters into a contract to sell a customer a wiring...

On January 1, 2020, Novak Co. enters into a contract to sell a customer a wiring base and shelving unit that sits on the base in exchange for $2,800. The contract requires delivery of the base first but states that payment for the base will not be made until the shelving unit is delivered. Novak identifies two performance obligations and allocates $1,120 of the transaction price to the wiring base and the remainder to the shelving unit. The cost of...

Hopner Products enters into a contract with Tulles to sell three different products. The total transaction...

Homework Answers