Question
Wildhorse Construction Company has a contract to construct a $6034000 oil rig at an estimated cost of $5341000. The contract is to start in July
Wildhorse Construction Company has a contract to construct a $6034000 oil rig at an estimated cost of $5341000. The contract is to start in July 2021, and the oil rig is to be completed in October 2023. The following data pertain to the construction period.
| 2021 | 2022 | 2023 | |
|---|---|---|---|
| Costs to date | $1335250 | $3808700 | $5431700 |
| Estimated costs to complete | 4005750 | 1632300 | |
| Progress billings during the year | 1204100 | 3202400 | 1627500 |
| Cash collected during the year | 1001500 | 2341400 | 2691100 |
What amount of gross profit (loss) should Wildhorse recognize in 2022 using the percentage-of-completion method?
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Tracking Your Trek Looking Backward To Determine Your Forward
Authors: Erica Pauly
1st Edition
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