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Gomez, Inc. began work in 2014 on contract #3814, which provided for a contract price of $14,400,000. Other details follow: 2014 2015 Costs incurred during
Gomez, Inc. began work in 2014 on contract #3814, which provided for a contract price of $14,400,000. Other details follow:
2014 | 2015 | |||
Costs incurred during the year | $2,400,000 | $7,350,000 | ||
Estimated costs to complete, as of December 31 | 7,200,000 | 0 | ||
Billings during the year | 2,700,000 | 10,800,000 | ||
Collections during the year | 1,800,000 | 11,700,000 |
Assume that Gomez uses the percentage-of-completion method of accounting. The portion of the total gross profit to be recognized as income in 2015 is.
Anser is $4,650,000- just need help to work. thanks
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