Appliance Store is an experienced home appliance dealer.  Ap…

Appliance Store is an experienced home appliance dealer.  Appliance Store also offers a number of services for the home appliances that it sells.  Assume that Appliance Store sells ovens on a standalone basis.  Appliance Store also sells installation services and maintenance services for ovens.  However, Appliance Store does not offer installation or maintenance services to customers who buy ovens from other vendors.  Pricing for the ovens is as follows: Oven only $800 Oven with installation services 850 Oven with maintenance services 975 Oven with installation and maintenance services 1,000 In each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $175.  Additionally, the incremental amount charged by Appliance Store for installation approximates the amount charged independent third parties.   Indicate the amount of  revenue that should be allocated to the oven, the installation, and to the maintenance contract for the purchase of an oven for $1,000 that includes installation and maintenance.  

Interforce sells unnatural supplements to customers with an…

Interforce sells unnatural supplements to customers with an unconditional sales return if they are not satisfied. The sales returns period extends 60 days. On May 1, 2021, the company sold 500 units (bottles) of their muscle supplement pills at $30 for each unit.  The cost per unit to Interforce is $16.  Based on prior experience, the company expects to have 10% of their product returned.  By June 30, 2001 27 units of the supplement have been returned.  Assuming a fiscal year end of June 30, what is the cost of goods sold the company will recognize?

Geoff Huen, president of Concrete Sometimes, agrees to const…

Geoff Huen, president of Concrete Sometimes, agrees to construct a concrete cart path at Nebraska Gold Club.  Concrete Sometimes enters in to a contact with Nebraska to construct the path for $500,000.  In addition, as part of the contract, a performance bonus of $70,000 will be paid based on the timing of completion.  The performance bonus will be paid fully if completed by the agreed-upon date.  The performance bonus decreases by $15,000 per week for every week beyond the agreed-upon date.  Geoff has been involved in a number of contracts that had performance bonuses as part of the agreement.  Geoff estimates, given his experience, that there is a 45% probability of completing the project on time, a 30% probability that he will be one week late, a 20% probability that he will be 2 weeks late and a 5% probability that it will be completed three weeks late.  Given this information and assuming Geoff uses the expected value approach, what is the transaction price?  

Genser Inc manufactures Norwegian style sweaters.  On March…

Genser Inc manufactures Norwegian style sweaters.  On March 15, 2018, Genser ships 800 sweaters to Selger Co. to sell on consignment. Although the shipping costs of $1,100 were paid by Genser, Selger paid an additional $500 to help expedite the sweaters through Customs.  This extra $500 is NOT reimbursable by Genser.   By the end of March, Selger had sold 300 of the sweaters for $88,500.  If Selger retains a 10% commission for the sale of the sweaters, how much cash will they remit to Genser?