Boeing Company manufactures commercial aircraft using job costing. In October 2036, the company incurs $300,000,000 in direct costs and $180,000,000 in factory overhead for a new airplane model.

Requirements:

• Calculate the annual cost of the project using the completed contract method.
• Allocate overhead costs using the percentage of completion method.
• Determine the total cost incurred each year.
• Prepare a cost reconciliation statement showing the cost incurred and revenue recognized.
• Analyze the financial performance of the project.