ENG SL     login   register  
 Tutorial

Richardson Systems sells integrated bottling manufacturing systems that involve a conveyer

E 5-16

 

Richardson Systems sells integrated bottling manufacturing systems that involve a conveyer, a labeler, a filler, and a capper. All of this equipment is sold separately by other vendors, and the fair values of the separate equipment are as follows:

-----skipped-----

Richardson sells the integrated system for $45,000. Each of the components is shipped separately to the customer for the customer to install.

Required:

1.

  

Assume that each of the components can be used independently, even though Richardson sells them as an integrated system. How much revenue should be allocated to each component?

2.

  

Now assume that the labeler, filler, and capper can't be used in production without the conveyer, and that the conveyer is the last component installed. How much revenue should be recognized at the time the conveyer is installed?



quote
in excel 2007 file ( & 1 attachments).
attachments
 e5-16.xlsx (9KB)  

ask an expert

General Questions tutors
genius_all_sunjects genius_all_sunjects
 
MuhammadYousaf MuhammadYousaf
 
expert-tutor expert-tutor
 
 
bookworm234 bookworm234
 
 
Evangelist Evangelist
 
 
RAJDEEPSOF RAJDEEPSOF
 
 
manali manali
 
 
genius_all_subjects genius_all_subjects
 
 
mbaGrad mbaGrad
 
 
expert expert
 
 
Generaltutor Generaltutor
 
 
perfectprof perfectprof
 
 
programmer programmer
 
 
georgeamigo georgeamigo
 
 
swati4u swati4u
 
 
Scholaronline Scholaronline
 
 
johnalia johnalia
 
 
theprofessor theprofessor
 
 
mastermind mastermind
 
 
sheemona sheemona