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Facts: Year 1 Year 2 Year 3 Year 4 Sales price $4,000 $4,000 $4,000 $4,000 Total (estimated) cost of contract 3,000 3,200 4,200 4,300 Costs
Facts: Year 1 Year 2 Year 3 Year 4 Sales price $4,000 $4,000 $4,000 $4,000 Total (estimated) cost of contract 3,000 3,200 4,200 4,300 Costs incurred to date 1,500 2,400 3,600 4,300 Required: Compute gross profit in Years 1 through 4 under the percentage-of-completion and completed contract methods
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