Question
During 2020, Vaughn 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, Vaughn 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 | $366,300 | $772,100 | $1,063,000 | |||
| Estimated costs to complete | 623,700 | 330,900 | 0 | |||
| Billings to date | 300,000 | 909,000 | 1,610,000 | |||
| Collections to date | 271,000 | 807,000 | 1,424,000 |
(a)
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 |
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Managerial Accounting
Authors: Ray Garrison, Theresa Libby, Alan Webb
10th Canadian edition
978-1259024900
