PART A On 1 January 20X0O Moore Ltd entered into a contract with Nutly Ltd to...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
PART A On 1 January 20X0O Moore Ltd entered into a contract with Nutly Ltd to sell three products for a total transaction price of $500,000. Each product is appropriately classified as a separate performance obligation. Moore typically sells these three products on a stand-alone basis. Relevant information about the products is as follows: Stand-alone selling Product price $125,000 $237,500 $145,000 Complete the following table to determine the transaction price to be allocated to each product using the relative standalone selling price method (options are at the bottom of the screen - you may need to scroll to find them). Allocated Stand-alone Product Percentage transaction selling price price A $125,000 AB Allocated Stand-alone Product Percentage transaction selling price price A $125,000 $237,500 $145,000 PART B Assume now that Moore sells products A and B on an individual basis. Product C is a new product that has not been previously sold. Additional information to determine the stand-alone selling prices is provided below: Market Stand-alone Product competitor Forecasted cost selling price prices A $125,000 $130,000 $89,451 В $237,500 $232,000 $164,859 C $150,000 $102,832 Market Stand-alone Product competitor Forecasted cost selling price prices A $125,000 $130,000 $89,451 $237,500 $232,000 $164,859 ? $150,000 $102,832 (i) Complete the following table to determine the transaction price to be allocated to each product using the adjusted market assessment approach. Market Allocated Percentage of Product competitor transaction total prices price A $130,000 B $232,000 $150,000 Total (ii) Calculate the margin that would be used to determine the transaction price to be allocated to each product using the expected cost plus margin approach. Margin = DRAG AND DROP THE FOLLOWING OPTIONS INTO THE GAPS ABOVE (YOU MAY USE THE SAME OPTIONS MULTIPLE TIMES) (ii) Calculate the margin that would be used to determine the transaction price to be allocated to each product using the expected cost plus margin approach. Margin %3D DRAG AND DROP THE FOLLOWING OPTIONS INTO THE GAPS ABOVE (YOU MAY USE THE SAME OPTIONS MULTIPLE TIMES) $500,000 45.31% $142,857 $507,500 28.57% 140% $123,153 $512,000 133% $226,563 125% $126,953 $146,484 24.63% 29.30% 100% 87.5% $233,990 46.80% 25.39% PART A On 1 January 20X0O Moore Ltd entered into a contract with Nutly Ltd to sell three products for a total transaction price of $500,000. Each product is appropriately classified as a separate performance obligation. Moore typically sells these three products on a stand-alone basis. Relevant information about the products is as follows: Stand-alone selling Product price $125,000 $237,500 $145,000 Complete the following table to determine the transaction price to be allocated to each product using the relative standalone selling price method (options are at the bottom of the screen - you may need to scroll to find them). Allocated Stand-alone Product Percentage transaction selling price price A $125,000 AB Allocated Stand-alone Product Percentage transaction selling price price A $125,000 $237,500 $145,000 PART B Assume now that Moore sells products A and B on an individual basis. Product C is a new product that has not been previously sold. Additional information to determine the stand-alone selling prices is provided below: Market Stand-alone Product competitor Forecasted cost selling price prices A $125,000 $130,000 $89,451 В $237,500 $232,000 $164,859 C $150,000 $102,832 Market Stand-alone Product competitor Forecasted cost selling price prices A $125,000 $130,000 $89,451 $237,500 $232,000 $164,859 ? $150,000 $102,832 (i) Complete the following table to determine the transaction price to be allocated to each product using the adjusted market assessment approach. Market Allocated Percentage of Product competitor transaction total prices price A $130,000 B $232,000 $150,000 Total (ii) Calculate the margin that would be used to determine the transaction price to be allocated to each product using the expected cost plus margin approach. Margin = DRAG AND DROP THE FOLLOWING OPTIONS INTO THE GAPS ABOVE (YOU MAY USE THE SAME OPTIONS MULTIPLE TIMES) (ii) Calculate the margin that would be used to determine the transaction price to be allocated to each product using the expected cost plus margin approach. Margin %3D DRAG AND DROP THE FOLLOWING OPTIONS INTO THE GAPS ABOVE (YOU MAY USE THE SAME OPTIONS MULTIPLE TIMES) $500,000 45.31% $142,857 $507,500 28.57% 140% $123,153 $512,000 133% $226,563 125% $126,953 $146,484 24.63% 29.30% 100% 87.5% $233,990 46.80% 25.39%
Expert Answer:
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
Posted Date:
Students also viewed these organizational behavior questions
-
On October 1, George Jones entered into a contract with Johnson Motor Company, a dealer in automobiles, to buy a used car for $10,850. He paid $1,100 down and, under the agreement, was to make...
-
On October 1, George Jones entered into a contract with Johnson Motor Company, a dealer in automobiles, to buy a used car for $10,850. He paid $1,100 down and, under the agreement, was to make...
-
A stock's value declines by 20% over the previous year in each of the first 3 years after the stock was offered to the market. By approximately what percentage does the stock value need to increase...
-
Marks 1. Find the limits, if they exist. If a limit does not exist, check whether the function approaches +00 x2 + 2x - 15 (5) (a) lim x-3 x2-4x +3 x2 - 4 (5) (b) lim x2 x4 - 16 Carol Ferland CF...
-
Marathon runners preparing for a race engage in "carb loading" to maximize their carbohydrate reserves. This involves eating large quantities of starchy foods. Why is starch preferable to candy or...
-
Explain how a budget facilitates communication and coordination.
-
Monthly City Temperatures The data file CityTemps contains the average monthly temperature (in ${ }^{\circ} \mathrm{C}$ ) for the cities of Moscow (Russia), Melbourne (Australia), and San Francisco...
-
Sublime Sandals Company was formed on January 1, 2014, and is preparing its annual financial statements dated December 31, 2014. Ending inventory information about the four major items stocked for...
-
what ways does inspiration intersect with motivation and drive, propelling individuals towards extraordinary feats of accomplishment ? Explain
-
Select all that apply: Requisitioning an OTC item to use for script fulfillment includes: Purchasing the item through the Target POS Generating a Price Barcode using price inquiry Getting a Target...
-
5. Consider a model of a wing-body shape mounted in a wind tunnel. The flow conditions in the test section are standard sea-level properties with a velocity of 100m/s. The wing area and chord are...
-
How might operating leverage impact a companys decision making process?
-
how to properly decline a job settlement (offering a low amount not money) for wrongful termination ?
-
It seems that when considering international business pursuits, many US companies make one of two mistakes: 1) they either assume it is much easier than it actually is or 2) they assume it is much...
-
Provide information regarding Russia's foreign exchange regime, foreign exchange rate, and trade account component of the balance of payments. According to McKinsey, currency and exchange rate...
-
With it being financed and implemented under a PPP structure, how do macroeconomic conditions and toll rate issues serve to deter projects' investors and financiers?
-
Iguana Incorporated paid a dividend of $1.90 this year. The dividend is then expected to grow by 14% a year for 3 years; it will be 3% per year after that. The required rate of return is 8.6%. The...
-
Show that if A is any m n matrix, then Im A = A and AIn = A.
-
Distinguish between appeal by right and writ of certiorari.
-
Plaintiff American Manufacturing Mutual Insurance Company (American) filed this action seeking a declaratory judgment that it was not liable to the defendant creditors on two surety bonds. The...
-
Discuss the significant changes Article 2 and Article 2A have made in the need for an offer to include all material terms.
-
Use Minitab to obtain the results of Tukey's test for the shear bond strength data from Example 1 in Section 13.1. Approach The steps for obtaining the results of Tukey's test using Minitab, Excel,...
-
Another scientist examines how the presence of a nonnative bird species, the starling, affects other species of birds. Is this a population-level study, a community-level study, or an ecosystem-level...
-
What is the function of the placenta?
Study smarter with the SolutionInn App