Question
During 2010 Majan Company started a construction job with a contract price of $1,600,000. The job was completed in 2012. The following information is available.
- During 2010 Majan Company started a construction job with a contract price of $1,600,000. The job was completed in 2012. The following information is available.
|
| 2010 | 2011 | 2012 |
| Cost incurred to date | $400,000 | $825,000 | $1,070,000 |
| Estimated costs to complete | 600,000 | 275,000 | 0 |
| Billings to date | 300,000 | 900,000 | 1,600,000 |
| Collections to date | 270,000 | 810,000 | 1,425,000 |
Instructions: Compute the amount of gross profit to be recognized each year assuming the percentage-of-completion method is used.
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Commercial Energy Auditing Referance Handbook
Authors: Steve Doty
1st Edition
0881736481, 978-0881736489
