Question
On June 1, Westin Corporation enters into a contract with the Eastman Companies to deliver 25 distinct items at a price of $1,000 each. Per
On June 1, Westin Corporation enters into a contract with the Eastman Companies to deliver 25 distinct items at a price of $1,000 each. Per the terms of the contract, Eastman pays $500 for each unit as they arrive with the balance due once the final unit has been delivered. During the month of June, Westin delivered 5 units with the remaining 20 units expected to be delivered in the next several months. On July 1, Westin and Eastman modify the contract to include 50 additional units. The price of each additional units is $1,200 because the price of input materials has increased. This price represents the price that Westin would sell the units for today to other customers. Use this information to answer the next 2 questions. In July, Westin delivered 5 of the original units and 8 of the additional units. What amount of revenue should Westin recognize in July? 14,600 13,000 None of the listed options 14,857 6,000 Now, assume that the price of the additional units is not standalone. What amount of revenue should Westin recognize in July? 13,000 6,000 14,600 O 14,857 None of the listed options
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