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Cool-IT Ltd manufactures and sells air conditioning equipment to retailers across North America In 2020 Cool-IT signed a two-year contract with BigMart Ltd to supply it with 60800 units at a pric

Cool-IT Ltd. manufactures and sells air conditioning equipment to retailers across North America. In 2020, Cool-IT signed a two-year contract with BigMart Ltd. to supply it with 60,800 units at a price of $75 per unit. Cool-IT’s cost to manufacture these units is $51. The following schedule summarizes the production, delivery, and payments in relation to the contract. Production costs are recorded to inventory:
    2020   2021   Total
Air conditioning units delivered   39,400   21,400   60,800
Production costs incurred   $2,009,400   $1,091,400   $3,100,800
Cash payments received   $2,500,000   $1,767,000   $4,267,000
 
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(a1)
Determine how much revenue Cool-IT would be able to recognize in 2020 and 2021.
Revenue recognized in 2020   $
Revenue recognized in 2021   $

Feb 10 2020 View more View Less

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