Chapter 8, Problem 8.15BE

Allocation of Transaction Price. Using the information in BE8-13, indicate how Sycamore should allocate the transaction price to the three products using the residual approach.

BE8-13 Allocation of Transaction Price. Sycamore enters into a contract with a customer to sell three products for a total transaction price of $15,000 Each product is appropriately classified as a separate performance obligation Sycamore only sells products A and B on an individual basis so it must estimate the standalone selling price for cement Information related to these three products is provided in the following table.

Product	Standalone Selling Price	Market Competitor Prices	Forecasted Cost
Bucks	$6,200	$7,800	$5,500
Stones	$8,000	$8,200	$5,000
Cement	Not available	$4,000	$2,000

How should Sycamore allocate the transaction price to the three products using the adjusted market assessment approach?