Question
On February 1, 2017, Marsh Contractors agreed to construct a building at a contract price of $5,730,000. Marsh estimated total construction costs would be $3,944,000
On February 1, 2017, Marsh Contractors agreed to construct a building at a contract price of $5,730,000. Marsh estimated total construction costs would be $3,944,000 and the project would be finished in 2019. Information relating to the costs and billings for this contract is as follows:
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 2017, 2018, and 2019.
Percentage-of-Completion Gross Profit
2017-
2018-
2019-
Completed-Contract Gross Profit
2017-
2018-
2019-
2017 2018 2019 Total costs incurred to date $1,479,000 $2,598,000 $4,565,000 Estimated costs to complete 2,465,000 1,732,000 -0 Customer billings to date 2,130,000 3,944,000 5,530,000 Collections to date 1,930,000 3,430,000 5,430,000Step by Step Solution
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