Question
In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in
In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows:
| 2021 | 2022 | 2023 | |||||||
| Cost incurred during the year | $ | 2,100,000 | $ | 3,150,000 | $ | 2,475,000 | |||
| Estimated costs to complete as of year-end | 5,400,000 | 2,250,000 | 0 | ||||||
| Billings during the year | 2,150,000 | 3,100,000 | 4,750,000 | ||||||
| Cash collections during the year | 1,875,000 | 3,100,000 | 5,025,000 | ||||||
Westgate recognizes revenue over time according to percentage of completion.
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Principles of Operations Management Sustainability and Supply Chain Management
Authors: Jay Heizer, Barry Render, Chuck Munson
10th edition
978-0134183954, 134183959, 134181980, 978-0134181981
