Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1) Kitchens Using Tang's standard pricing for custom cabinets and granite countertops, the kitchens are priced between $37,500 and $45,000. The price varies with the

image text in transcribed
image text in transcribed
1) Kitchens Using Tang's standard pricing for custom cabinets and granite countertops, the kitchens are priced between $37,500 and $45,000. The price varies with the size of the kitchen, the amount of granite involved and the type of wood and fittings used for the cabinets. At the standard pricing, the total bid would be $610,000. Tang quoted a price of $650,000 to the developer of BSD for building all the kitchens in 15 houses. As part of the bid, Tang offered to provide the developer of BSD with a $40,000 voucher that could be used toward a future construction project. The developer accepted the offer from Tang to build the kitchens. Roofs Tang also provided BSD a quote for building roofs for the 15 houses. In the BSD project, there are five simple roofs and 10 complex roofs. Tang quoted the developer of BSD $150,000 to build the 10 complex roofs and a separate bid of $55,000 to build the simple roofs. A condition of the "simple" roof contract is that Tang must purchase roofing trusses from BSD for $12,000. The trusses are required by Tang to complete other contracts that it is scheduled to work on. Tang can buy the trusses, which have a fair value of $9,000, from BSD or from another vendor, regardless of whether BSD awards the roofing contract to Tang. BSD accepted the offer from Tang for the simple and complex roofs. What is the total amount of revenue Tang will recognize for the BSD project? a) $812,000 b) $815,000 c) $852,000 d) $855,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Horngrens Cost Accounting A Managerial Emphasis

Authors: Srikant M. Datar, Madhav V. Rajan, Louis Beaubien

8th Canadian Edition

134453735, 9780134824680, 134824687, 9780134733081 , 978-0134453736

More Books

Students also viewed these Accounting questions