Problem II (16 pts)

On February 1, 2002, Coe Contractors agreed to construct a building at a contract price of $6,000,000. Coe estimated total construction costs would be $4,200,000 and the project would be finished in 2004. Information relating to the costs and billings for this contract are as follows:

2002 2003 2004

Total costs incurred to date $1,470,000 $2,695,000 $4,700,000

Estimated costs to complete 2,730,000 2,205,000 -0-

Customer billings to date 2,200,000 4,000,000 6,000,000

Collections to date 2,000,000 3,500,000 5,900,000

INSTRUCTIONS 1.Complete a schedule in good form detailing the calculation of gross profit recognized for each of years under the percentage of completion method