Problem 18-6

On March 1, 2014, Pechstein Construction Company contracted to construct a factory building for Fabrik Manufacturing Inc. for a total contract price of $8,123,000. The building was completed by October 31, 2016. The annual contract costs incurred, estimated costs to complete the contract, and accumulated billings to Fabrik for 2014, 2015, and 2016 are given below.

		2014		2015		2016
Contract costs incurred during the year		$2,657,620		$2,807,890		$2,021,490
Estimated costs to complete the contract at 12/31		3,824,380		2,021,490