Answer:
Explanation:
2021 2022 2023
Bills during the year 2,180,000 2,644,000 5,176,000
Cost incurred in the year 2,016,000 2,808,000 2,613,600
Cumulative cost to date 2,016,000 4,824,000 7,437,000
Estimated cost to complete 5,184,000 2,376,000 0
Estimated total cost 7,200,000 7,200,000 7,437,000
percentage completion
2,016,000/7,200,000*100 =28%
4,824,000/7,200,000*100 = 67%
7,437,000/7,437,000 *100=100%
Percentage Completion 28 67 100
Contract price 10,000,000
Less cumulative cost (7,437,000)
Gross profit 2,563,000
Contract value 2021 10,000,000* 28 % =2,800,000
2022 10,000,000* 67% = 6,700,000
2023 10,000,000*1005 = 10,000,000
Contract value 2,800,000 6,700,000 10,000,000
less revenue recognized 2,800,000 6,700,000
2,800,000 3,900,00 3,300,000
less cost incurred in the year 2,016,000 2,808,000 2,613,000
Profit recognized 784,000 1,092,000 687,000
