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Star Construction Corp. has a contract to construct a building for $10,950,000. The building is controlled by the customer throughout the term of the
Star Construction Corp. has a contract to construct a building for $10,950,000. The building is controlled by the customer throughout the term of the contract. Total costs to complete the building were originally estimated at $8,850,000. 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 $150,000 Total construction costs incurred in each year were as follows: 20x5 $2,700,000 206 $4,500,000 20X7 $1,800,000 Billings each year were as follows: 26X5 $2,300,000 20X5 20x7 $4,900,000 $3,750,000 Required: 1. Calculate the revenues and gross profit for the construction project for each of the three years assuming the company uses inputs to measure progress. (Round intermediate calculations to 2 decimal places Round final answers to nearest whole dollars.)
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