Computer Component PC tower Monitor Color laser printer Computer bundle purchase price Individual Selling Price per Unit $1,150 $ 250 $ 600 Cost per Unit $375 S200 S225 $1,500 1. Allocate the revenue from the computer bundle purchase to each of the hardware products using the stand-alone method based on the individual selling price per unit. 2. Allocate the revenue from the computer bundle purchase to each of the hardware products using the stand-alone method based on cost per unit. 3. Allocate the revenue from the computer bundle purchase to each of the hardware products using the stand-alone method based on physical units (that is, the number of individual units of product sold per bundle). 4. Which basis of allocation makes the most sense in this situation? Explain your answer. Required

Computer Component PC tower Monitor Color laser printer Computer bundle purchase price Individual Selling Price per Unit $1,150 $ 250 $ 600 Cost per Unit $375 S200 S225 $1,500 1. Allocate the revenue from the computer bundle purchase to each of the hardware products using the stand-alone method based on the individual selling price per unit. 2. Allocate the revenue from the computer bundle purchase to each of the hardware products using the stand-alone method based on cost per unit. 3. Allocate the revenue from the computer bundle purchase to each of the hardware products using the stand-alone method based on physical units (that is, the number of individual units of product sold per bundle). 4. Which basis of allocation makes the most sense in this situation? Explain your answer. Required

Quickbooks Online Accounting

3rd Edition

ISBN:9780357391693

Author:Owen

Publisher:Owen

Chapter4: Operating Activities: Sales And Cash Receipts

Section: Chapter Questions

Problem 3.3C

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