Lemon Company signed a contract charging a customer P600,000 to change the windows of a customer's house. The contract includes costs for materials and labor. The company would charge P250,000 for materials if sold separately and P500,000 for labor if the customer will purchase the needed materials. How much of the transaction price woukd the company allocate to its performacne obligation to provide the needed services to the customer?

Lemon Company signed a contract charging a customer P600,000 to change the windows of a customer's house. The contract includes costs for materials and labor. The company would charge P250,000 for materials if sold separately and P500,000 for labor if the customer will purchase the needed materials. How much of the transaction price woukd the company allocate to its performacne obligation to provide the needed services to the customer?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 19E: Rix Company sells home appliances and provides installation and service for its customers. On April...

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