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Percentage-of-Completion and Completed Contract Methods Philbrick Company signed a three-year contract to provide sales training to the employees of Elliot Company. The contract price is

Percentage-of-Completion and Completed Contract Methods

Philbrick Company signed a three-year contract to provide sales training to the employees of Elliot Company. The contract price is $1,200 per employee and the estimated number of employees to be trained is 400. The expected number to be trained in each year and the expected training costs follow.

Number of Employees Training Costs Incurred
2016 125 $60,000
2017 200 75,000
2018 75 40,000
Total 400 $175,000

Required

For each year, compute the revenue, expense, and gross profit reported assuming revenue is recognized using the following method. (Do not round until your final answers. Round your answers to two decimal places.)

1. Percentage-of-completion method, where percentage-of-completion is determined by the number of employees trained.

Revenue Expense Gross Profit
2016 $Answer

$Answer

$Answer

2017 $Answer

$Answer

$Answer

2018 $Answer

$Answer

$Answer

Total $Answer

$Answer

$Answer

2. Percentage-of-completion method, where percentage-of-completion is determined by the costs incurred.

Revenue Expense Gross Profit
2016 $Answer

$Answer

$Answer

2017 $Answer

$Answer

$Answer

2018 $Answer

$Answer

$Answer

Total $Answer

$Answer

$Answer

3. Completed contract method.

Revenue Expense Gross Profit
2016 $Answer

$Answer

$Answer

2017 $Answer

$Answer

$Answer

2018 $Answer

$Answer

$Answer

Total $Answer

$Answer

$Answer

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