Essay
On January 27, 2010, Lock Company entered into a three-year agreement with Strong Enterprises to supply 2,000 ounces of platinum for $200 an ounce. During 2010, Lock mined and purified the 2,000 ounces of platinum at a cost of $200,000. The platinum was shipped on January 14, 2011 and arrived on January 15, 2011, at Strong's warehouse. What is Lock's revenue and gross profit recognized during 2010, consistent with the criteria for revenue recognition and the matching concept? Explain.
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