ADVANCED ACCOUNTING 1-LONG TERM CONSTRUCTION CONTRACTS

D Question 8 10 pts A Company entered into a construction agreement in 2019 that called for a contract price of P9,600,000. At the beginning of 2020, a change in order increase in the initial contract price by P480,000. In relation to the project, the following data were obtained: Description 2019 2020 Costs incurred to date P4,920,000 P8,640,000 Estimated costs to 4,920,000 2,160,000 complete Billings made to date 5,280,000 8,700,000 Collections made to 4,920,000 8,700,000 date Compute the amount of construction in progress (net) for the year 2020. Test choice [Do not select] POC method - P780,000 liabilities ; Cost recovery method - P780,000 Liabilities POC method - P60,000 liabilities ; Cost recovery method - P60,000 Liabilities POC method - P780,000 Assets ; Cost recovery method - P780,000 Assets POC method - P630,000 liabilities ; Cost recovery method - P630,000 Liabilities