Company sells systems that mix ingredients. The systems often include mixers, scales, and maintenance agreements.  When the Company provides these goods or services separately, it charges$50,000for the mixer,$30,000for the scale,and$20,000for an annual maintenance agreement.

 

On July 1, Year8 Company signed a contract to provide a customer with one of these complete systems in exchange for $92,000.

• Company received$30,000on July 1and$62,000on November1,Year8as payment in full from the customer.
• The customers' contract included the mixer, the scale, and the annual maintenance agreement that provides for scheduled maintenance on a monthly basis. The mixer, scales, and maintenance agreement are each a separate performance obligation.

 

Compute the dollar amount of the transaction price allocated to each performance obligation (3 amounts). 2.How much revenue does Company record in Year8 related to each of the following: a) mixer PO b) scale PO c) maintenance agreement PO

 

 

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ANSWER To compute the dollar amount of the transaction price allocated to each performance obligatio... View the full answer