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2021 is correct but for some reason, it says that 2022 and 2023 are wrong. I am doing the Costs incurred divided by the actual+estimated
2021 is correct but for some reason, it says that 2022 and 2023 are wrong. I am doing the Costs incurred divided by the actual+estimated costs to complete and then multiplying that by the total contract price but it is yielding an incorrect result.
Required information [The following information applies to the questions displayed below.] In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows: Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 2021 $2,184,000 5,616,000 2,120,000 1,860,000 2022 $3,510,000 2,106,000 3,574,000 3,400,000 2023 $2,316,600 0 4,306,000 4,740,000 Westgate recognizes revenue over time according to percentage of completion. 4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.) 2022 Costs incurred during the year Estimated costs to complete as of year-end 2021 $2,184,000 5,616,000 $3,860,000 3,160,000 2023 $3,260,000 0 2022 2023 Revenue Gross profit (loss) $ $ 2021 2,800,000 616,000Step by Step Solution
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