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In 2021, Alpha Construction began work on a contract with a price $850,000 and estimated costs of $595,000. Data for each year of the contract
In 2021, Alpha Construction began work on a contract with a price $850,000 and estimated costs of $595,000. Data for each year of the contract are as follow:
2021 2022 2023
Costs incurred during the year $238,000. $319,600 $105,000
Estimated costs to complete $357,000 $139,400 $0
Partial billings $260,000 $210,000 $380,000
Collections $240,000 $200,000 $410,000
- Under the percentages-of-completion method of revenue recognition, gross profit in 2021 would be?
- Under the percentages-of-completion method of revenue recognition, the balance in Construction in Progress at the end of 2021 would be?
- Under the completed contract method of revenue recognition, the balance in Construction in Progress at the end of 2021 would be?
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