Question
Clemons Auto Parts enters a contract with Sherlock Inc. to sell three different products for a total of $900,000. Each product is considered to be
Clemons Auto Parts enters a contract with Sherlock Inc. to sell three different products for a total of $900,000. Each product is considered to be a separate performance obligation. Using the information in the table below, determine the allocation of the transaction price to each product using the Residual Value Approach.
| Product | Stand-Alone Price | Market Price | Forecasted Cost |
| A | Not Available | $200,000 | $170,000 |
| B | $260,000 | $230,000 | $200,000 |
| C | $420,000 | $660,000 | $510,000 |
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Product A Transaction Price $________________________
Product B Transaction Price $________________________
Product C Transaction Price $________________________
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Managerial Accounting Tools For Business Decision Making
Authors: Strayer University
2010th Custom Edition
0470603534, 978-0470603536
