Question
During 2020, Nilsen Company started a construction job with a contract price of $1,600,000. The job was completed in 2022. The following information is available.
During 2020, Nilsen Company started a construction job with a contract price of $1,600,000. The job was completed in 2022. The following information is available.
If the company uses the percentage-of-completion method, at the end of 2021 (the second year of construction), what is the amount of inventory/current liability related to the construction of this project? Do not round in any part. Please show your work.
|
| 2020 | 2021 | 2022 |
| Costs 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 |
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