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Problem 1. On January 1, 2022, All Too Weld Constructions entered into a long-term construction contract to build a road upstate to prevent travelers from getting lost. The P13 million project, which spans 22 kilometers, was completed in three years and all relevant information about the projects are as follows: 1. Using the cost-to-cost method, how much is the construction in progress, gross as of the year ended December 31, 2023 ? 2. Assuming that the company used the zero-profit method, how much is the realized gross profit for the vear ended December 31, 2023? 3. Assume a budget of 80,000 hours to complete the project, how much is the realized gross profit for the year ended December 31, 2022 if the input method based on labor hours was used? 4. Assuming the company used the output method based on value of the work certified by an expert, how much is the realized gross profit for the year ended December 31,2022 ? Problem 4. I Knew You Were Rubble Inc. entered into a long-term construction contract to construct a sophisticated flood drainage system to prevent people from drowning, for an initial contract price of p20,000,000. During 2024 , the contract price increased due to the change in the project design. The following data were available: 1. How much is the cost of construction to be recognized in the company's income statement for the year ended December 31,2024 ? 2. How much is the construction revenue to be recognized in the company's income statement for the year ended December 31, 2024? Problem 1. On January 1, 2022, All Too Weld Constructions entered into a long-term construction contract to build a road upstate to prevent travelers from getting lost. The P13 million project, which spans 22 kilometers, was completed in three years and all relevant information about the projects are as follows: 1. Using the cost-to-cost method, how much is the construction in progress, gross as of the year ended December 31, 2023 ? 2. Assuming that the company used the zero-profit method, how much is the realized gross profit for the vear ended December 31, 2023? 3. Assume a budget of 80,000 hours to complete the project, how much is the realized gross profit for the year ended December 31, 2022 if the input method based on labor hours was used? 4. Assuming the company used the output method based on value of the work certified by an expert, how much is the realized gross profit for the year ended December 31,2022 ? Problem 4. I Knew You Were Rubble Inc. entered into a long-term construction contract to construct a sophisticated flood drainage system to prevent people from drowning, for an initial contract price of p20,000,000. During 2024 , the contract price increased due to the change in the project design. The following data were available: 1. How much is the cost of construction to be recognized in the company's income statement for the year ended December 31,2024 ? 2. How much is the construction revenue to be recognized in the company's income statement for the year ended December 31, 2024
