Question
On January 1, Manufac Co. enters into a contract with a retailer to sell 300 distinct items of merchandise for $60,000 ( $200 per item)
On January 1, Manufac Co. enters into a contract with a retailer to sell 300 distinct items of merchandise for $60,000 ( $200 per item) over a 12-month period. On March 31, the parties to the contract agree to a contract modification to add an additional 100 items for $250 each within the original contract period. The $250 per unit price for the additional items represents the standalone selling price of these items on the date of the modification. If 200 items had already been sold under the original contract, how would revenue be allocated to the remaining 100 items under the original contract and the 100 items per the contract modification?
Revenue for 100 items under original contract: | Answer |
Revenue for 100 items per contract modification: | Answer |
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