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Assume that the scales, software and calibration service are all separate performance obligations. How much revenue will Ortiz recognize in 2021 for this contract?

Assume that the scales, software and calibration service are all separate performance obligations. How much revenue will Ortiz recognize in 2021 for this contract?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On July 15, 2021, Omz & Co. signed a contract to provide EverFresh Bakery with an ingredient-weighing system for a price of $94,800 The system included finely tuned scales that fit into EverFresh's automated assembly line, Ott's proprietary software modified to allow the weighing system to function in EverFresh's automated system, and a one-year contract to calibrate the equipment and software on an as-needed basis. (Ortiz competes with other vendors who offer ongoing calibration contracts for Ortiz's systems) if Ortiz was to provide these goods or services separately, it would charge $64,000 for the scales. $10.000 for the software and $25,000 for the calibration contract. Ortiz delivered and installed the equipment and software on August 1, 2021, and the calibration service commenced on that date. Assume that the scales, software and calibration service are all separate performance obligations How much revenue wil Ortiz recognize in 2021 for this contract? D Muttle Choice $70152 $94.800 380,422
Transcribed Image Text:On July 15, 2021, Omz & Co. signed a contract to provide EverFresh Bakery with an ingredient-weighing system for a price of $94,800 The system included finely tuned scales that fit into EverFresh's automated assembly line, Ott's proprietary software modified to allow the weighing system to function in EverFresh's automated system, and a one-year contract to calibrate the equipment and software on an as-needed basis. (Ortiz competes with other vendors who offer ongoing calibration contracts for Ortiz's systems) if Ortiz was to provide these goods or services separately, it would charge $64,000 for the scales. $10.000 for the software and $25,000 for the calibration contract. Ortiz delivered and installed the equipment and software on August 1, 2021, and the calibration service commenced on that date. Assume that the scales, software and calibration service are all separate performance obligations How much revenue wil Ortiz recognize in 2021 for this contract? D Muttle Choice $70152 $94.800 380,422
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