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On June 1 5 , 2 0 2 3 , 4 9 ers construction signed a $ 3 6 0 0 0 0 contract to
On June ers construction signed a $ contract to build a small building. ers estimated that the total cost would be $ Construction started immediately because the required completion date was August ers's relevant data relating to this construction project were as follows:
Actual costs incurred during each year $ $
Estimated costs to complete $ $
Instructions:
a Using the percentageofcompletion method, calculate how much gross profit ers should recognize each year.
b Using the completed contract method, calculate how much gross profit ers should recognize each year.
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