home / study /business / accounting /accounting auestions and answers nailed tilconstrution (naied #l of the company i. an vec regitrnent Question: Nailed It! Construction (Nailed it! or the "Company), an SEC re ailed it! Construction (Nailed It! or the "Company'), an SEC registrant, is a nufactures commercial and residential buildings. On March 1, 2018, the Company entered into an agreement with a customer, Village Apartments, to construct a residential apartment building for a fixed price of S1.5 million. The Company estimates that it will incur costs of S1 million to complete construction of the apartment building. The apartment building will only transfer to Village Apartments once the construction of the entire building is complete. In addition, Village Apartments has various design requirements that would require Nailed It! to incur significant costs to rework the building prior to seling it to a customer other than Village Apartments. To construct the apartment building, Nailed It! acquires standard materials that it regularly uses in construction contracts for both residential and commercial buildings. These materials are used to manufacture generic component parts for inclusion in Village Apartments' residential buildings. These standard materials remain interchangeable with other items until they are deployed in a Village Apartments building. The Company has made the following purchases and incurred the following costs throughout the construction progress: . As of June 30, 2018, in total, Nailed It has purchased $75,000 of component parts. As of June 30, 2018, $25,000 of component parts remain in inventory and $50,000 have been integrated into the project. Further, Nailed It! has incurred $12,500 of direct costs to integrate the component parts into the Village Apartments construction project during the three months ended June 30, 2018. During the three months ended September 30,2018, Nailed It purchased an additional $500,000 of component parts ($575,000 in total). Of the $575,000 of component parts, S325,000 remain in inventory and $200,000 have been integrated into the project during the three tomber 30 2018. During the three months ended September 30, 2018, Nailed It nt narts into the Village Apartments home / study /business / accounting /accounting auestions and answers nailed tilconstrution (naied #l of the company i. an vec regitrnent Question: Nailed It! Construction (Nailed it! or the "Company), an SEC re ailed it! Construction (Nailed It! or the "Company'), an SEC registrant, is a nufactures commercial and residential buildings. On March 1, 2018, the Company entered into an agreement with a customer, Village Apartments, to construct a residential apartment building for a fixed price of S1.5 million. The Company estimates that it will incur costs of S1 million to complete construction of the apartment building. The apartment building will only transfer to Village Apartments once the construction of the entire building is complete. In addition, Village Apartments has various design requirements that would require Nailed It! to incur significant costs to rework the building prior to seling it to a customer other than Village Apartments. To construct the apartment building, Nailed It! acquires standard materials that it regularly uses in construction contracts for both residential and commercial buildings. These materials are used to manufacture generic component parts for inclusion in Village Apartments' residential buildings. These standard materials remain interchangeable with other items until they are deployed in a Village Apartments building. The Company has made the following purchases and incurred the following costs throughout the construction progress: . As of June 30, 2018, in total, Nailed It has purchased $75,000 of component parts. As of June 30, 2018, $25,000 of component parts remain in inventory and $50,000 have been integrated into the project. Further, Nailed It! has incurred $12,500 of direct costs to integrate the component parts into the Village Apartments construction project during the three months ended June 30, 2018. During the three months ended September 30,2018, Nailed It purchased an additional $500,000 of component parts ($575,000 in total). Of the $575,000 of component parts, S325,000 remain in inventory and $200,000 have been integrated into the project during the three tomber 30 2018. During the three months ended September 30, 2018, Nailed It nt narts into the Village Apartments