Question
CHING CORP. uses the cost to cost method to account for its construction contracts. The contract price of the project is P 1,800,000. CHING CORP.
CHING CORP. uses the cost to cost method to account for its construction contracts. The contract price of the project is P 1,800,000.
CHING CORP. estimates that it will take 36 months to complete the contract. The following information for its construction contract is presented below: Costs incurred to date (2021) - P 400,000, (2022) - P 1,260,000, (2023) - ? ; Realized gross profit for the current year (2021) - P 50,000, (2022) - P 310,000, (2023) - P 80,000.
- What is the percentage of completion rate in year 2021?
- What is the total estimated cost to complete in 2023?
- What is the percentage of completion rate in year 2022?
- What is the estimated cost to complete in year 2021?
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College Accounting Chapters 1-15
Authors: James A Heintz, Robert W Parry
19th Edition
0324376162, 978-0324376166
