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On February 1, 2020, Sunland Contractors agreed to construct a building at a contract price of $5,810,000. Sunland estimated total construction costs would be $4,008,000
On February 1, 2020, Sunland Contractors agreed to construct a building at a contract price of $5,810,000. Sunland estimated total construction costs would be $4,008,000 and the project would be finished in 2022. Information relating to the costs and billings for this contract is as follows:
2020 | 2021 | 2022 | ||||
Total costs incurred to date | $1,503,000 | $2,646,000 | $4,605,000 | |||
Estimated costs to complete | 2,505,000 | 1,764,000 | -0- | |||
Customer billings to date | 2,210,000 | 4,008,000 | 5,610,000 | |||
Collections to date | 2,010,000 | 3,510,000 | 5,510,000 |
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 2020, 2021, and 2022.
Percentage-of-Completion Gross Profit | Completed-Contract Gross Profit | |||||
2020 | $ | 2020 | $ | |||
2021 | $ | 2021 | $ | |||
2022 | $ | 2022 | $ |
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