Rajbir Construction Co. contracted to build a bridge for $10,000,000. Construction began in 2018 and was completed in 2019. Data relating to the construction are:

Costs incurred during the year Estimated costs to complete

Raj uses the percentage-of-completion method.

Instructions

2018 2019 $3,300,000 $2,750,000

(a) How much revenue should be reported for 2018? Show your computation.

(b) Make the entry to record progress billings of $4,100,000 during 2018.

(c) Make the entry to record the revenue and gross profit for 2018.

(d) How much gross profit should be reported for 2019? Show your computation.