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

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter8: Revenue Recognition, Receivables, And Advances From Customers

Section: Chapter Questions

Problem 3Q

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Allocate the transaction price to the performance obligation
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