1. A construction company estimates costs for a new project: Direct materials $100,000, direct labor $50,000, overhead $30,000, fixed costs $20,000.
   • Requirements:
     • Apply the revenue recognition principle to determine when revenue should be recognized for the completed project.
     • Calculate the total cost of the project.
     • Prepare a job cost sheet with revenue recognition implications.
     • Recommend pricing strategies that align with revenue recognition guidelines.
     • Discuss how revenue recognition impacts profitability analysis for the project.