Metlock Company sells outdoor grilling products, providing gas and charcoal grills, accessories, and installation services for custom patio grilling stations. Metlock offers contract MG100 which is comprised of a free-standing gas grill for small patio use plus installation to a customer’s gas line, and a 2-year warranty for parts for a total price $1,000 . On a standalone basis, the grill sells for $750 (cost $420), and Metlock estimates that the cost of the installation service is $100. The company usually gets a 30% profit added services (cost-plus method). Metlock signed 25 MG100 contracts on May 30, 2021, and customers paid the contract price in cash. The grills were delivered and installed on June 15, 2021. Prepare journal entries for Metlock for MG100 in May, June and December of 2021.
Metlock Company sells outdoor grilling products, providing gas and charcoal grills, accessories, and installation services for custom patio grilling stations.
Metlock offers contract MG100 which is comprised of a free-standing gas grill for small patio use plus installation to a customer’s gas line, and a 2-year warranty for parts for a total price $1,000 . On a standalone basis, the grill sells for $750 (cost $420), and Metlock estimates that the cost of the installation service is $100. The company usually gets a 30% profit added services (cost-plus method). Metlock signed 25 MG100 contracts on May 30, 2021, and customers paid the contract price in cash. The grills were delivered and installed on June 15, 2021.
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