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 Price Selling Price Transaction Price Obligations as Stated Ratio (rounded) Day passes 45 47 x Two meals 30 Parking Price $ $ 45 $ 45 - $ 95 $ 30 30 - 95 32 X 0 20 20 95 < 21 x $ 75 $ 95 $ 100 x

Answer 1

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.

1 Answer 2 Performance Obligation Selling Price Ratio Transaction Price as stated 45 3 Standalone selling price 45 Total Allocated Transaction Price 4 95 36 Day Pass Two Meals Parking 45 30 5 30 30 / / / 95 24 6 0 20 95 16 20 95 7 75 75 8 9 10 11 12 13