Ortiz & CP signed a contract to priovide EverFresh Bakery with an ingredint weighing system for a price of 180,000. The system included finely tuned scaled that fit into Everfresh's authomated line. Ortiz's propiertary 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 and services separetly, it would charge 120,000 for the scales, 20,000 for the software, and 60,000 for the calibration contract. Ortiz delivered and installed the equipmemt and software on August 1, and thr calibration service commenced on that date. Assume that the scales, sofiware and calibration service are all separate performance obligations. How much revenue will Ortiz recognize by 12/31 of the first year for this contract?

Ortiz & CP signed a contract to priovide EverFresh Bakery with an ingredint weighing system for a price of 180,000. The system included finely tuned scaled that fit into Everfresh's authomated line. Ortiz's propiertary 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 and services separetly, it would charge 120,000 for the scales, 20,000 for the software, and 60,000 for the calibration contract. Ortiz delivered and installed the equipmemt and software on August 1, and thr calibration service commenced on that date. Assume that the scales, sofiware and calibration service are all separate performance obligations. How much revenue will Ortiz recognize by 12/31 of the first year for this contract?

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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