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On February 1, 2014, Marsh Contractors agreed to construct a building at a contract price of $5,790,000. Marsh estimated total construction costs would be $3,992,000
On February 1, 2014, Marsh Contractors agreed to construct a building at a contract price of $5,790,000. Marsh estimated total construction costs would be $3,992,000 and the project would be finished in 2016. Information relating to the costs and billings for this contract is as follows:
2014 | 2015 | 2016 | |
Total costs incurred to date | $1,497,000 | $2,634,000 | $4,595,000 |
Estimated costs to complete | 2,495,000 | 1,756,000 | -0- |
Customer billings to date | 2,190,000 | 3,992,000 | 5,590,000 |
Collections to date | 1,990,000 | 3,490,000 | 5,490,000 |
Fill in the correct amounts on the following schedule. For percentage-of-completion accounting and for completed-contract accounting, show the gross profit that should be recorded for 2014, 2015, and 2016.
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