33.Sta. Clara Construction Company has used the cost to cost the percentage of completion method of recognizing revenue. In reviewing the records, Sta. Clara finds the following information regarding a recently completed building project for which the total contract was P20,000,000. Gross profit (loss) Cost incurred 2017 400,000 3,600,000 2018 1,400,000 2019 (200,000) 8,200,000 Sta. Clara wants to know how effectively the company operated during the last 3 years on this project and, since the information is not complete, has asked you to analyze the project as to the amount of revenue, costs, gross profit, and percermage of completion recognized during the 3 years.

33.Sta. Clara Construction Company has used the cost to cost the percentage of completion method of recognizing revenue. In reviewing the records, Sta. Clara finds the following information regarding a recently completed building project for which the total contract was P20,000,000. Gross profit (loss) Cost incurred 2017 400,000 3,600,000 2018 1,400,000 2019 (200,000) 8,200,000 Sta. Clara wants to know how effectively the company operated during the last 3 years on this project and, since the information is not complete, has asked you to analyze the project as to the amount of revenue, costs, gross profit, and percermage of completion recognized during the 3 years.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter16: Accounting Periods And Methods

Section: Chapter Questions

Problem 40P

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MINA CONSTRUCTION has used the cost-to-cost percentage of completion method to recognize revenue. Recently, their office was struck by fire. In trying to reconstruct all records of the company, the accountant was able to find the following information regarding a recently completed building project for which the total contract was P4,000,000. 2020 2021 2022 Gross profit (loss) each year 80,000 280,000 (40,000) Cost incurred each year 720,000 ? 1,640,000 MINA, the owner of the company, would like to find out the answers to the following questions in relation to the above data: 1. How much cost was incurred in 2021? A. 3,680,000 B. 1,640,000 C. 2,360,000 D. 1,320,000 2. What was the percentage of completion by the end of 2021? A. 90% B. 40% C. 51% D. 60% 3. What was the estimated cost to complete the project at the end of 2021? A. 3,400,000 B. 1,320,000 C. 2,040,000 D. 1,360,000
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