Accorsi & Sons Specializes in Selling and Installing Upscale Home

question 187

Essay

Accorsi & Sons specializes in selling and installing upscale home theater systems. On March 1, 2018, Accorsi sold a premium home theater package that includes a projector, set of surround speakers, and high quality leather seats, along with complete installation service, for $32,500. If sold separately, each of these goods or services would have cost $15,000 (projector), $12,500 (speakers), $17,500 (seats), and $3,000 (installation), respectively.
Required:
How much of the transaction price would be allocated to the projector, the speakers, the leather seats, and the installation service, assuming that each of these four parts of the contract is a separate performance obligation? Show your work.

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Definitions:

Burglary

The unlawful entry into a building with the intent to commit a crime, typically theft.

Shoplifting

The act of stealing goods from a store by concealing them and leaving the premises without paying.

Commercial Establishments

Places of business that are engaged in activities aimed at selling goods and services to consumers.

Italians

Refers to the people originating from, or associated with, Italy.