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ACCT 382 - Week 5 - Chapter 5 Homework - Question 5

ACCT 382 - Week 5 - Chapter 5 Homework - Question 5
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ACCT 382 - Week 5 - Chapter 5 Homework - Question 5

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Question 5

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:

 

  Conveyer

$

20,000

 

  Labeler

 

10,000

 

  Filler

 

15,000

 

  Capper

 

5,000

 

 




     Total

$

50,000

 

 








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