Revenue Question 5.7 On 1 February 2014, Company Z entered into an agreement with Customer S to develop a new database system (both hardware and software) for Customer S. The agreement states that the total consideration to be paid for the system will be $864,360. Company Z expects that its total costs for the system will be $711,500. As at the end of its reporting period, 30 June 2014, Company Z had incurred labour costs of $122,780 and materials costs of $342,010. Of the materials costs, $59,180 is in respect of materials that have not yet been used on the system. Of the labour costs, $25,610 is an advance payment to a sub-contractor who had not performed his work on the project as at 30 June 2014. As at 30 June 2014 Customer S had made progress payments to Company Z of $502,100. Company Z has determined that AASB 111 does not apply to this transaction and calculates the percentage of completion using paragraph 24(c) of AASB 118.

Calculate the revenue to be recognised by Company Z for the year ended 30 June 2014.(Round percentage calculations to 3 decimal places, e.g. 12.256%. Round final answer to 0 decimal places, e.g. 2,527.)