7. Realized gross profit in 20x2 _____________ 8. The balance of "Contract Liability" at the end of 20x2 _____________ 9. Revenue that should be recognized in 20x3 _____________
In 20x1, XYZ Company enters into a construction contract with a customer. The contract price is P10,000,000.
Information on the contract follows:
20X1 20X2 20X3
Contract costs incurred during the year P2,645,132 P236,451 P2,657,000
Estimated costs to complete 2,697,451 2,116,777 -
Progress Billings 5,000,000 3,000,000 2,000,000
Collections on progress billings 2,000,000 4,000,000 4,000,000
Using the cost-to-cost method, compute the following:
Note: Use up to two (2) decimal places in presenting the answer for percentage of completion. Use six (6)
decimal places when applying the percentage.
7. Realized gross profit in 20x2 _____________
8. The balance of "Contract Liability" at the end of 20x2 _____________
9. Revenue that should be recognized in 20x3 _____________
10. Realized gross profit in 20x3
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