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3 years ago

Summary data for Benedict Construction Co.'s (BCC) Job 1227, which was completed in 2017, are presented below:

Business

1 answer:

saw5 [17]3 years ago

5 0

Answer:

Explanation:

Bid price - $450,000

Contract cost 2016- $ 180,000

Contract cost in 2017 - $195,000

Gross profit = $75,000

Estimated cost to complete at 2016 - $200,000

Percentage completion in 2016 - 180000/380000* 100 =47 %

Revenue recognized in 2016 - 47% * 450,000 = 211,500

Gross profit = 211,500- 180,000 = 31,500

2017

Revenue recognized - 53% = $238,500

Cost $195,000

Gross profit $43,500

3)Completed contract method -

Income are recognized when contract is completed

2016 - No revenue generated / recorded

2017

Revenue - 450,000

Cost to date - 375,000

Gross profit - 75,000

4) When using the cost recovery method under IFRS , an equal amount of income and revenue is recognized in the early life time of the project

2016

Income - 180000

Cost- 180000

Gross profit - 0

2017

Income -450000

cost 375,000

Gross profit - $75,000

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Answer:

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Explanation:

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Answer:

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Answer and Explanation:

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Physical units of production

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Units to be accounted for:

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