Sheridan offers contract GM205, which is comprised of a free-standing gas grill for small patio use plus installation to a customer's gas line for a total price $873. On a standalone basis, the grill sells for $757 (cost $454), and Sheridan estimates that the standalone selling price of the installation service (based on cost-plus estimation) is $164. (The selling of the grill and the installation services should be considered two performance obligations.) Sheridan signed 10 GM205 contracts on April 20.
Sheridan offers contract GM205, which is comprised of a free-standing gas grill for small patio use plus installation to a customer's gas line for a total price $873. On a standalone basis, the grill sells for $757 (cost $454), and Sheridan estimates that the standalone selling price of the installation service (based on cost-plus estimation) is $164. (The selling of the grill and the installation services should be considered two performance obligations.) Sheridan signed 10 GM205 contracts on April 20.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Sheridan offers contract GM205, which is comprised of a free-standing gas grill for small patio use plus installation to a customer's gas line for a total price $873. On a standalone basis, the grill sells for $757 (cost $454), and Sheridan estimates that the standalone selling price of the installation service (based on cost-plus estimation) is $164. (The selling of the grill and the installation services should be considered two performance obligations.) Sheridan signed 10 GM205 contracts on April 20.
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