On April 1, 2023, Crane Inc entered into a cost plus fixed fee non-cancellable contract to construct an electric generator for Waterway Corporation. At the contract date, Crane estimated that it would take two years to complete the project at a cost of $1,960,000. The fixed fee stipulated in the contract was $441,000. Crane appropriately accounts for this contract under the percentage-of-completion method. During 2023, Crane incurred costs of $784,000 related to this project. The estimated cost at December 31, 2023, to complete the contract is $1,176,000. Waterway was billed $588,000 under the contract. The billings are non- refundable (a) Prepare a schedule to calculate the amount of gross profit to be recognized by Crane under the contract for the year ended December 31, 2023. Total CRANE INC. Computation of Gross Profit to be Recognized on Uncompleted Contract eTextbook and Media $ $ %

On April 1,2023, Crane Inc entered into a cost plus fixed fee non-cancellable contract to construct an electric generator for Waterway Corporation. At the contract date, Crane estimated that it would take two years to complete the project at a cost of $1,960,000. The foxed fee stipulated in the contract was $441,000. Crane appropriately accounts for this contract under the percentage-of-completion method. During 2023, Crane incurred cost5 of $784,000 related to this project. The estimated cost at December 31,2023 , to complete the contract is $1,176,000. Waterway was billed $588,000 under the contract The billings are nonrefundable. (a) Prepare a schedule to calculate the amount of gross profit to be recognized by Crane under the contract for the year ended December 31, 2023