Can u please help with Problem Accounting Problem: Cost allocationLaila Pool Company sells prefabricated pools that cost $100,000 to customers for$180,000. The sales price includes an installation fee, which is valued at $25,000.The fair value of the pool is $160,000. The installation is considered a separateperformance obligation and is expected to take 3 months to complete.The transaction price allocated to the pool and the installation isa. $150,986 and $22,124 respectivelyb. $160,000 and $25,000 respectivelyc. $180,000 and $25,000 respectivelyd. $138, 378 and $21,622 respectivelye. $155,676 and $24,324 respectively

Explanation: In the given case, the total consideration received is $180,000. It includes an…

Answered: Accounting Problem: Cost allocation…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

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Chapter2: Building Blocks Of Managerial Accounting

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Problem 12EB: Able Transport operates a tour bus that they lease with terms that involve a fixed fee each month...

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Bella Pool Company sells prefabricated pools that cost P100,000 to customers for P180,000. The sales price includes an installation fee, which is valued at P25,000. The fair value of the pool is P160,000. The installation is considered a separate performance obligation and is expected to take 3months to complete. The transaction price is allocated to the pool and the installation is:a. P155,676 and P24,324 respectivelyb. P160,000 and P25,000 respectively Show complete solution
Compute for the net income for year 3
ok t M ences Thomas Consultants provided Bran Construction with assistance in implementing various cost-savings initiatives. Thomas's contract specifies that it will receive a flat fee of $68,000 and an additional $38,000 if Bran reaches a prespecified target amount of cost savings. Thomas estimates that there is a 20% chance that Bran will achieve the cost-savings target. Required: 1. Assuming Thomas uses the expected value as its estimate of variable consideration, calculate the transaction price. 2. Assuming Thomas uses the most likely value as its estimate of variable consideration, calculate the transaction price. 3. Assume Thomas uses the expected value as its estimate of variable consideration, but is very uncertain of that estimate due to a lack of experience with similar consulting arrangements. Calculate the transaction price. 1. Using expected value 2. Using most likely value 3. Using expected value but uncertain Transaction Price
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Leo Consulting enters into a contract with Highgate University to restructure Highgate's processes for purchasing goods from suppliers. The contract states that Leo will earn a fixed fee of $22,000 and earn an additional $4,000 if Highgate achieves $40,000 of cost savings. Leo estimates a 60% chance that Highgate will achieve $40,000 of cost savings. Assuming that Leo determines the transaction price as the expected value of expected consideration, what transaction price will Leo estimate for this contract?
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Leo Consulting enters into a contract with Highgate University to restructure Highgate’s processes for purchasing goods from suppliers. The contract states that Leo will earn a fixed fee of $66,000 and earn an additional $13,000 if Highgate achieves $130,000 of cost savings. Leo estimates a 70% chance that Highgate will achieve $130,000 of cost savings. Assuming that Leo determines the transaction price as the expected value of expected consideration, what transaction price will Leo estimate for this contract? Transaction price for the contract ?
Fact Pattern: On November 1, Year 1, Iba Co. entered into a contract with a customer to sell 150 machines for 575 each. The customer obtains control of the machines at contract inception. Iba's cost of each machine is $45. Iba allows the customer to return any unused machine within 1 year from the sale date and recelve a full refund. Iba uses the expected value method to estimate the variable consideration. Based on Iba's experience and other relevant factors, it reasonably estimates that a total of 20 machines (12 machines in Year 1 and 8 machines in Year 2) will be returned. Iba estimates that (1) the machines are expected to be returned in salable condition and (2) the costs of recovering the machines will be immaterial. During Year 1, 10 machines were returned. At the end of Year 1, Iba continues to estimate that a total of 20 machines will be returned within 1 year from the sale date. What amount of revenue from this contract will be recognized by Iba in Year 17 $3,900 $9,750…
Able Transport operates a tour bus that they lease with terms that involve a fixed fee each month plus a charge for each mile driven. Able Transport drove the bus 7,000 miles and paid a total of $1,360 in June. In October. Able Transport paid $1,280 for the 5,000 miles driven. If Able Transport uses the high-low method to analyze costs, how much would Able Transport pay in December, if they drove 6,000 miles?

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