Lobner’s labs sold 10,000 viral testing kits to Walgreens fo…
Lobner’s labs sold 10,000 viral testing kits to Walgreens for $10/kit. The sales price included the viral kit itself and the process of testing the sample collected by the kit. The kit and testing process are deemed to be separate performance obligations. The kit sells for a stand-alone price of $6 and the testing process is typically sold on a stand-alone basis for $9/test. If Lobner’s labs delivers the 10,000 kits to Walgreens on April 15th, what amount of revenue can Lobner’s labs report on their income statement on that date, assuming the kits will not be used to collect samples until later in the month?