Question

Allocating a Transaction Price Seven Flags Park offers a promotion for free parking to customers who purchase a one day pass to enjoy thrill rides at its park plus two meal vouchers for a total of $75. Seven Flags sells each of the contract promises separately during the same time frame for the following standalone prices: Day pass = $45, Parking = $20, and two meal vouchers = $30. Compute the allocated transaction price of the day, two meals, and parking for Seven Flags assuming the sale of 500 promotional packages on July 15, 2020. *Round each allocated transaction price to the nearest whole dollar. Transactions Standalone Selling Total Allocated Performance Selling Transaction Price Obligations (rounded) Day passes 17,763 Two meals Parking 95 37,500 Price as Stated $ 0 $ Price Ratio Price 45 $ 45 $ 95 $ 0 30 0 + 95 0 0 20 0 0 $ 0 $ 95 $

Answer 1

Performance Obligation	Standard Selling Price	Units	Allocated Transaction Price
Day Passes	35.5	500	17,750
Two meals	23.6	500	11,800
Parking	15.9	500	7,950
Promotional Price	75	500	37,500

The Transaction Price Shall be allocated in the ratio of price i.e 45:30:20