Entity A enters into a contract to supply three products, Product X, Y and Z, to a customer for a price of $11,500. The promise to supply each of these products is identified as a separate performance obligation.

The stand-alone selling prices of each product are:

• Product X $7,000
• Product Y $4,000
• Product Z $9,000

REQUIRED:

Measure the contract price which should be allocated to each separate performance obligation.

ANSWER:

Product X = $Blank 1

Product Y = $Blank 2

Product Z = $Blank 3