A company enters into a contract to supply three distinct products to a customer. The promise to supply each of these products is regarded as a separate performance obligation. The stand-alone prices of the three products (if sold singly) are: Product X, $12,500; Product Y, $24,000, Product Z, $27,500 The agreed contract price is $57,600. How should this price be allocated to performance obligations? Product X- $19,200; Product Y- $19,200; Product Z- $19,200 Product X- $11,250; Product Y- $21,600; Product Z- $24,750 Product X- $10,367; Product Y- $21,867; Product Z- $25,366 Product X- $12,500; Product Y- $24,000; Product Z- $27,500
A company enters into a contract to supply three distinct products to a customer. The promise to supply each of these products is regarded as a separate performance obligation. The stand-alone prices of the three products (if sold singly) are: Product X, $12,500; Product Y, $24,000, Product Z, $27,500 The agreed contract price is $57,600. How should this price be allocated to performance obligations? Product X- $19,200; Product Y- $19,200; Product Z- $19,200 Product X- $11,250; Product Y- $21,600; Product Z- $24,750 Product X- $10,367; Product Y- $21,867; Product Z- $25,366 Product X- $12,500; Product Y- $24,000; Product Z- $27,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company enters into a contract to supply three distinct products to a customer. The promise to supply each of these products is regarded as a separate performance obligation. The stand-alone prices of the three products (if sold singly) are:
- Product X, $12,500;
- Product Y, $24,000,
- Product Z, $27,500
The agreed contract price is $57,600. How should this price be allocated to performance obligations?
-
Product X- $19,200; Product Y- $19,200; Product Z- $19,200
-
Product X- $11,250; Product Y- $21,600; Product Z- $24,750
-
Product X- $10,367; Product Y- $21,867; Product Z- $25,366
-
Product X- $12,500; Product Y- $24,000; Product Z- $27,500
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