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Question 1 (Long-term Contracts) (10 marks) (20 minutes) On June 30, 2022, Bianca Company enters into a three-year service contract at a contracted price of:
| Question 1 (Long-term Contracts) | (10 marks) | (20 minutes) | |||||
| On June 30, 2022, Bianca Company enters into a three-year service contract at a contracted price of: | $5,200,000 | ||||||
| You were provided with the following information about the contract: | |||||||
| 2022 | 2023 | 2024 | |||||
| Costs incurred during the year | $900,000 | $2,050,000 | $2,000,000 | ||||
| Expected costs to complete contract | 3100000 | 2400000 | 0 | ||||
| Required - | |||||||
| Calculate and record the revenue and profit/loss in 2023 and 2024. | |||||||
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Cost Accounting Foundations And Evolutions
Authors: Michael R. Kinney, Jenice Prather-Kinsey, Cecily A. Raiborn
6th Edition
0324235011, 978-0324235012
