Question
During 2020, Sweet Company started a construction job with a contract price of $1,610,000. The job was completed in 2022. The following information is available.
During 2020, Sweet Company started a construction job with a contract price of $1,610,000. The job was completed in 2022. The following information is available.
| 2020 | 2021 | 2022 | ||||
|---|---|---|---|---|---|---|
| Costs incurred to date | $380,000 | $847,770 | $1,069,000 | |||
| Estimated costs to complete | 620,000 | 253,230 | 0 | |||
| Billings to date | 302,000 | 896,000 | 1,610,000 | |||
| Collections to date | 272,000 | 812,000 | 1,418,000 |
Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used.
| Gross profit recognized in 2020 | $enter a dollar amount | |
|---|---|---|
| Gross profit recognized in 2021 | $enter a dollar amount | |
| Gross profit recognized in 2022 | $enter a dollar amount |
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Managerial Accounting
Authors: Karen Wilken Braun, Wendy M. Tietz
2nd Custom Edition
1269396803, 978-1269396806
