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A reminder to everyone that for the above referenced new construction, the cost-to-cost method will be used to measure the progress toward completion. The total
A reminder to everyone that for the above referenced new construction, the cost-to-cost method will be used to measure the progress toward completion. The total construction costs incurred in Year 1 were $1,500,000. The total estimated costs for this project are currently $4,500,000. 3.2 Conner & Fox, LLC, is obligated to make the following progress payments to Wagner Construction, Inc.: June 30, Year 1 $1,800,000 June 30, Year 2 $1,800,000 June 30, Year 3 $1,800,000 upon completion of contract $ 600,000 Costs Year 1 Actual Year 2 Actual Year 3 Projected Labor $ 900,000 $ 1,200,000 $ 900,000 Materials $ 600,000 $ 800,000 $ 600,000 Marketing costs* $ $ 84,746 unknown Total $ 1,500,000 $ 2,084,746 $ 1,500,000 Final project costs incurred in Year 3 - $1,200,000 ($500,000 Labor, $700,000 Materials) Wagner Construction, Inc., entered into a construction agreement with Conner & Fox, LLC, to build a new 5-story office building. Calculate the revenue and gross profit from the construction contract recognized by Wagner in Years 1-3. For each item, enter the appropriate amounts in the associated cells. Indicate profits as positive numbers and losses as negative numbers using a leading minus (-) sign?
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