please help on part b)
heres my work
Suppler Corp. enters into a government contract during the year to provide cornputer equipment for $3,000,000, the contract consists of asingle performance obligation to provad specihed equipinent in three years. Total costs estimated by Supplier corp, for the contract are $2,100,000. The equipment is highy specialized and has no alternative uses, As negotiated in the contrad, any costs incurred by supplier corp, plus a specdied profit margin will be pald to supplier corp, in the event of a contract cancellation, Actuat costs incurred during the first year of the contract were $500,000 incluating unexpected cost averruns of $120,000 due to abor ineffiencies. Assume that at the end of the second year of the contract, the eatimate of tocal costs has increased to $2.250.000m ison cue to an increase in cost of materials, Rctiba costs incurred to. date sre $1,657,500, exduding year one inefficlendes. a. Calculse (1) recognued revenue (2) the gross pretit, and (3) adjusted contract margin to be recorded in the second year of the contract % of compretchan =840,000/2,100,000=40% R cevence =40%(3,000,000)=1,200,000 Gmossprofit =1,200,000960,000=240,000 cumulative adur mergin =240,000120,000= Yeer 2 Q\% of completion 1,687,500/2,250,000 =75% Revune =35%(3,000,000)=1,050,000 Gross proffit =1,050,000847,500=202,50 Suppler Corp. enters into a government contract during the year to provide cornputer equipment for $3,000,000, the contract consists of asingle performance obligation to provad specihed equipinent in three years. Total costs estimated by Supplier corp, for the contract are $2,100,000. The equipment is highy specialized and has no alternative uses, As negotiated in the contrad, any costs incurred by supplier corp, plus a specdied profit margin will be pald to supplier corp, in the event of a contract cancellation, Actuat costs incurred during the first year of the contract were $500,000 incluating unexpected cost averruns of $120,000 due to abor ineffiencies. Assume that at the end of the second year of the contract, the eatimate of tocal costs has increased to $2.250.000m ison cue to an increase in cost of materials, Rctiba costs incurred to. date sre $1,657,500, exduding year one inefficlendes. a. Calculse (1) recognued revenue (2) the gross pretit, and (3) adjusted contract margin to be recorded in the second year of the contract % of compretchan =840,000/2,100,000=40% R cevence =40%(3,000,000)=1,200,000 Gmossprofit =1,200,000960,000=240,000 cumulative adur mergin =240,000120,000= Yeer 2 Q\% of completion 1,687,500/2,250,000 =75% Revune =35%(3,000,000)=1,050,000 Gross proffit =1,050,000847,500=202,50
