Question 4.

Star Construction Corp. has a contract to construct a building for $10,957,100. The building is controlled by the customer throughout the term of the contract. Total costs to complete the building were originally estimated at $8,858,100. Construction commenced on 4 February 20X5. Actual costs were in line with estimated costs for 20X5 and 20X6. In 20X7, actual costs exceeded estimated costs by $147,900. Total construction costs incurred in each year were as follows: 20X5

Total construction costs incurred in each year were as follows: 20X5	$	2,701,800
20X6	$	4,503,000
20X7	$	1,801,200

Billings each year were as follows: 20X5	$	2,301,500
20X6	$	4,903,200
20X7	$	3,752,400

Required: 8 Marks

Calculate and present the revenues and gross profit for the construction project for each of the three years assuming the company uses inputs to measure progress and revenue recognition