Question
PRACTICE 8-4 COST-TO-COST METHOD 1. Percentage of completion: [$100,000/($100,000 + $450,000)] = 18.182% Cumulative revenue to be recognized: $880,000 0.18182 ........................................................ $160,002 Revenue recognized in
PRACTICE 8-4
COST-TO-COST METHOD
1.
Percentage of completion: [$100,000/($100,000 + $450,000)] = 18.182%
Cumulative revenue to be recognized:
$880,000
0.18182
........................................................
$160,002
Revenue recognized in previous years
..........................
0
Revenue to be recognized in Year 1
...............................
$160,002
2.
Percentage of completion: [($100,000 + $150,000)/($100,000 + $150,000 +
$280,000)] = 47.170%
Cumulative revenue to be recognized:
$880,000
0.47170
........................................................
$415,096
Revenue recognized in previous years
..........................
160,002
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Accounting Tools For Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
7th Edition
1-119-57105-6, 978-1119571056
