Question
During 2020, Crane Company started a construction job with a contract price of $1,216,000. The job was completed in 2022. The following information is available.
During 2020, Crane Company started a construction job with a contract price of $1,216,000. The job was completed in 2022. The following information is available. The contract is non-cancellable.
| 2020 | 2021 | 2022 | ||||
|---|---|---|---|---|---|---|
| Costs incurred to date | $304,000 | $627,000 | $813,200 | |||
| Estimated costs to complete | 456,000 | 209,000 | 0 | |||
| Billings to date (non-refundable) | 228,000 | 684,000 | 1,216,000 | |||
| Collections to date | 205,200 | 615,600 | 1,083,000 |
(a)
Calculate the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. (Enter negative amounts using either a negative sign preceding the numbe
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
