Paulson Company uses the input method based on costs incurred to measure progress toward completion of longterm construction contracts. The following information relates to a contract that was awarded at a price of $ The estimated costs were $ and the contract duration was years.

Year Year Year

Cumulative cost to date $ $ $

Costs to complete at year end

Progress billings

Collections on account

 

 Assuming that $ was recognized as gross profit in Year  the amount of gross profit Paulson recognized in Year  was ?

 

  

Answer rating: 100% (QA)

Understanding the Input Method The input method assumes that the percentage of comp... View the full answer