Answered step by step
Verified Expert Solution
Question
1 Approved Answer
TOPIC 4 - REVENUE Question 35 Jot yet nswered PART A Marked out of 4.00 On 1 January 20XO Moore Ltd entered into a contract
TOPIC 4 - REVENUE Question 35 Jot yet nswered PART A Marked out of 4.00 On 1 January 20XO Moore Ltd entered into a contract with Nutly Ltd to sell three products for a total transaction price of $500,000. Each product is appropriately classified as a separate performance obligation. Moore typically sells these three products on a stand-alone basis. Relevant information about the products is as follows: Flag question Product Stand-alone selling price A B $125,000 $237,500 $145,000 Complete the following table to determine the transaction price to be allocated to each product using the relative standalone selling price method (options are at the bottom of the screen - you may need to scroll to find them). Product Stand-alone selling price Percentage Allocated transaction price A $125,000 Product Stand-alone selling price Percentage Allocated transaction price A $125,000 B $237,500 $145,000 PART B Assume now that Moore sells products A and B on an individual basis. Product C is a new product that has not been previously sold. Additional information to determine the stand-alone selling prices is provided below: Product Stand-alone selling price Market competitor prices Forecasted cost A $125,000 $237,500 B $130,000 $232,000 $150,000 $89,451 $164,859 $102,832 ? Product Stand-alone selling price Market competitor prices Forecasted cost A $125,000 $237,500 B $130,000 $232,000 $150,000 $89,451 $164,859 $102,832 ? (i) Complete the following table to determine the transaction price to be allocated to each product using the adjusted market assessment approach. Product Market competitor prices Percentage of total Allocated transaction price A $130,000 B $232,000 $150,000 Total (ii) Calculate the margin that would be used to determine the transaction price to be allocated to each product using the expected cost plus margin approach. Margin = DRAG AND DROP THE FOLLOWING OPTIONS INTO THE GAPS ABOVE (YOU MAY USE THE SAME OPTIONS MI TIPI F TIMES) (ii) Calculate the margin that would be used to determine the transaction price to be allocated to each product using the expected cost plus margin approach. Margin = DRAG AND DROP THE FOLLOWING OPTIONS INTO THE GAPS ABOVE (YOU MAY USE THE SAME OPTIONS MULTIPLE TIMES) $500,000 45.31% $142,857 $507,500 28.57% 140% $123,153 $512,000 133% $226,563 125% $126,953 $146,484 24.63% 29.30% 100% 87.5% $233,990 46.80% 25.39%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started