Philbrick Company signed a three-year contract to develop custom sales training materials and provide training to the employees of Elliot Company. The contract price is $1,200 per employee and the number of employees to be trained is 400. Philbrick can send a bill to Elliot at the end of every training session. Once developed, the custom training materials will belong to Elliot Company, but Philbrick does not consider them to be a separate performance obligation. The expected number to be trained in each year and the expected development and training costs follow. Number of employees Development and training costs incurred 2019 125 $ 65,000 2020 200 80,000 2021 75 30,000 Total 400 $175,000 For each year, compute the revenue, expense, and gross profit reported assuming revenue is recognized over time using... 1. the number of employees trained as a measure of the value provided to the customer. Note: Round answers to the nearest dollar. Year 2019 2020 2021 Total Revenues Answer Answer Answer Answer Expenses Answer Answer Answer Answer Gross Profit Answer Answer Answer Answer 2. the cost incurred as a measure of the value provided to the customer. Note: For your Revenue answers, use an unrounded percentage completed factor. and then round your final answer to nearest dollar. Year 2019 2020 2021 Total Revenues Answer Answer Answer Answer Expenses Answer Answer Answer Answer Gross profit Answer Answer Answer Answe

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Philbrick Company signed a three-year contract to develop custom sales training materials and provide training to the employees of Elliot Company. The contract price is $1,200 per employee and the number of employees to be trained is 400. Philbrick can send a bill to Elliot at the end of every training session. Once developed, the custom training materials will belong to Elliot Company, but Philbrick does not consider them to be a separate performance obligation.
The expected number to be trained in each year and the expected development and training costs follow.

	Number of employees	Development and training costs incurred
2019	125	$ 65,000
2020	200	80,000
2021	75	30,000
Total	400	$175,000

For each year, compute the revenue, expense, and gross profit reported assuming revenue is recognized over time using...
1. the number of employees trained as a measure of the value provided to the customer.
Note: Round answers to the nearest dollar.

Year	2019	2020	2021	Total
Revenues	Answer	Answer	Answer	Answer
Expenses	Answer	Answer	Answer	Answer
Gross Profit	Answer	Answer	Answer	Answer

2. the cost incurred as a measure of the value provided to the customer.
Note: For your Revenue answers, use an unrounded percentage completed factor. and then round your final answer to nearest dollar.

Year	2019	2020	2021	Total
Revenues	Answer	Answer	Answer	Answer
Expenses	Answer	Answer	Answer	Answer
Gross profit	Answer	Answer	Answer	Answer

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions