Question
Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,890,000. The project was begun in 2020 and
Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,890,000. The project was begun in 2020 and completed in 2021. Cost and other data are presented below:
| 2020 | 2021 | |||||
| Costs incurred during the year | $ | 423,000 | $ | 1,190,000 | ||
| Estimated costs to complete | 987,000 | 0 | ||||
| Billings during the year | 445,000 | 1,445,000 | ||||
| Cash collections during the year | 345,000 | 1,545,000 | ||||
Assume that Beavis recognizes revenue upon completion of the project. Required: Compute the amount of gross profit recognized during 2020 and 2021. (Leave no cells blank - be certain to enter "0" wherever required.)
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Advanced Principles Of Auditing
Authors: Hugo Romero
1st Edition
1632409372, 978-1632409379
