Question
Razer sells an electronic package. The package includes headphones, phone and maintenance agreement . Razer provides these electronic goods separately Company sells: headphones: $50 phone:
Razer sells an electronic package. The package includes headphones, phone and maintenance agreement . Razer provides these electronic goods separately
Company sells:
headphones: $50
phone: $20
maintenance agreement: $10
On June 1, 2021 Razer signed a contract to Steve for ONE of the electronic packages in exchange for $80
- Razer received $40 on June 1 and full payment of $40 on October 1, 2021
- The contract with Steve includes the headphones, phone and annual maintenance agreement that promises for scheduled maintenance on a monthly basis
- The headphone, phone and maintenance are separate performance obligations
Question: What is the transaction price allocated to each performance obligation
Calculate the revenue Razer records in 2021 to the performance obligations: 1. headphones
2. phone
3. maintenance agreement
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