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LOB Z has a $10M contract that is progress billed. The following information is provided: Contract Value 10,000,000 Price per unit 500,000 Units 20 ITD
| LOB Z has a $10M contract that is progress billed. | ||||
| The following information is provided: | ||||
| Contract Value | 10,000,000 | |||
| Price per unit | 500,000 | |||
| Units | 20 | |||
| ITD Cost incurred | 5,000,000 | |||
| Estimated total cost at completion | 9,000,000 | |||
| Estimated cost per unit | 450,000 | |||
| Units delivered | 10 | |||
| Progress Payment rate | 80% | |||
| Liquidation rate | 80% | |||
| The 10 units were delivered on 6/1/2019. | ||||
| 1. Determine the balance to be billed when the 10 units are delivered on 6/1/2019. | ||||
| Assume that all progress billings have been paid. | ||||
| 2. What is the balance in the Unliquidated Progress Collection account on 6/1/2019? | ||||
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Managerial Accounting
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
2nd edition
9780077493677, 78025516, 77493672, 9780077826482, 978-0078025518
