supplier Corp. enters into a government count contract during the year to provide computer equipment for $3 million contract consist of a single performance application to provide specified equipment in three years total cost estimator by supplier court for the contract or $2,000,100 in equipment is highly specialized and has no alternative uses as negotiate in the contract. Any costume quiet by supplier Corp. plus a specific profit margin will be paid to supplier Corp. in the event of a contract cancellation actual cost in choir during the first year of the contract worth 960,000 including unexpected cost overruns 120,000 due to the labor and Fisher tees assume at the end of the second year of the contract, the estimated total cost has increased $2,250,000 due to an increase in cost of materials. Actual cost inquired today are $1,687,500 including your one and efficiencies .
a) calculate recognize, revenue the gross profit and adjust a contract margin to be recorded in the second year of the contract
b) calculate, cumulative, recognize revenue, cumulative, gross profit, cumulative of Jesse contract margin at the end of the second year of the contract
total coat eatimated by supplier corp. for the contract is $2,100,100*
Computing Revenue and Gross Profit on Long-term Construction Contract Supplier Corp. enters into a government contract during the year to provide computer equipment for contract are $2,100,000. The equipment is highly specialized and has no alternative uses. As negotiated incurred during the first year of the contract were $960,000 including unexpected cost overruns of $120 Assume that at the end of the second year of the contract, the estimate of total costs has increased to a. Calculate (1) recognized revenue, (2) the gross profit, and (3) adjusted contract margin to be recorded b. Calculate (1) cumulative recognized revenue, (2) cumulative gross profit, and (3) cumulative adjusted Ing the year to provide computer equipment for $3,000,000. The contract consists of a single performance obligation to provi clalized and has no alternative uses. As negotiated in the contract, any costs incurred by Supplier Corp. plus a specified profit 60,000 including unexpected cost overruns of $120,000 due to labor inefficiencles. itract, the estimate of total costs has increased to $2,250,000 milion due to an increase in cost of materials. Actual costs incurr fit, and (3) adjusted contract margin to be recorded in the second year of the contract. onsists of a single periormance obligation to provide specifed equipment in three years. Total costs estimated by supplier Corp. for the s incurred by Supplier corp. plus a specified profit margin wili be pald to Supplier Corp. In the event of a contract cancellation. Actual costs lencles. an increase in cost of materials. Actual costs incurred to date are $1,687,500, excluding year one inefficiencles. year %ofcompretchar=840,000/2,100,000=40%Rcvence=40%(3,000,000)=1,200,000Cuossprofit=1,200,000960,000=240,000 cumulative ador murgin =240,000120,000= yeer 2 \%/ of completion 1,687,500/2,250,000=75\% Revune =35%(3,000,000)=1,050,000 Cross proffit =1,050,000 Computing Pevenue and Gross Profit on Long-term Construction Centract spectied equipment in three years. Total costs egtirnated toy Sipplier Corp. for the contract are 52,100,000, The equipment is highy specialzed and har ne altemathe ines. As neganiak in the contract, afy costs incurred by supplier corp. plus a spectied proft margin wil be poid to suppler corp. in the event of a controct cancellaton, Actual costs incurred duing the far yeat of the conkract were 3500,000 inclading unexpected cost pverruns of 1120,000 due to labor ine efficiencies. Astume that at the end of the second year of the contract the estimate of total costs has increased to 12.250 .000 mition due to an increase in cost of matiriak. Actuat cods incurred ty date are 11,607.500, exchuding year one inefficiencies. a. Calculsue (1) recoggired revenus, (2) the gross protit, and (a) adjusted contract margin to be recorded in the second year of che contract. Supplier Corp enters inho a government contract during the year to provide computer equipment for $3,000,000. The contract conststs of a single performance obligation to provide specified equipment in thee years. Total costs estimated by Supplier corp, for the contratt are $2,100,000. The equipment is highly specialzed and has no alternative uses, As negatiate in the contract, ary costs incured by suppier corp. plus a speafied profit matgin will be paid to suppler corp. in the event of a contract cancellation, Actual costs incurred during the fi year ot the contract were 5900,000 induding unexpected cost overtuns of 5120,000 due to habor inelficiencies Astame that at the end of the second year of the controct the estimate of total costs has increased to $2,250,000 anduon due to an increase in cost of materials. Actual costs incurred to date are 31,687,300, excluding year one inefficencies. a. Calculate (1) recognited rrverue, (2) the gross prohit, and (3) adjusted contract margin to be recorded in the second year of the contract
