Arab Construction Company began work in 2021 on contract XXXX, which provided for a contract price of €19,200,000. Other details follow: 2021 202 Costs incurred during the year Estimated costs to complete, as of December 31 Billings during the year Collections during the year O A €1,200,000. €3,200,000 9,600,000 3,600,000 2,400,000 Assume that Arab uses the percentage-of-completion method of accounting. The portion of the total gross profit to be recognized as income in 2021 is B. €1,600,000. €9,800,000 0 14,400,000 15,600,000
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- The total contract price of the project is P 1,200,000. This was constructed as follows: Year Cost for the year Completion as of the year 2016 P 432,000 60% 2017 P 184,250 85% 2018 P 103,750 100% The net income to be reported in 2018 under percentage of completion is –SMC entered into a long-term construction contract for 3 years. Contract price agreed was P4,150,000. The outcome of the contract was estimated reliably. The following data were ascertained for the contract: December 31, 2021 December 31, 2022 Percentage of completion 30% 82.5% Estimated cost to complete 1,960,000 840,000 1. What is the total cost incurred in year 2022? С. 1,680,000 D. 3,120,000 A. 4,073,750 В. 840,000 2. The realized gross profit (loss) in year 2022 is A. 650,000 B. 405,000 C. (. 245,000) D. (1,055,000) 3. What is the construction cost of sales for year 2022? С. 3,233,750 D. 4,478,750 A. 3,960,000 В. 3,120,000 4. What is the construction-in-progress as of 2022? А. 3,423,750 C. 2,065,000 В. 3,310,000 D. 2,470,000On January 1, 2021, Ka Leody Inc. entered into a long-term construction contract with fixed contract price of P 5,000,000. Ka Leody billed its client as follows: 30% during 2021, 40% during 2022 and the remainder at the end of project completion. The following data were provided by the cost accountant of the Ka Leody Inc: 2020 2021 2022 Cumulative cost incurred as of the end of the year P 2,200,000 P 3,600,000 P 4,800,000 Estimated remaining cost to complete at the end of the year P 3,300,000 P 900,000 What is the revenue to be recognized on December 31, 2021 under percentage of completion method ?
- ABC Co. entered into a long-term construction contract for 3 years. Contract price agreed was P8,300,000. The outcome of the contract was estimated reliably. The following data were ascertained for the contract: Percentage of completion Estimated costs to complete How much is the costs of construction for 2022? O 7,920,000 Ⓒ6,240,000 O 8,957,500 O 6,467,500 2021 30% P 3,920,000 2022 82.5% P 1,680,000SMC entered into a long-term construction contract for 3 years. Contract price agreed was P4,150,000. The outcome of the contract was estimated reliably. The following data were ascertained for the contract: December 31, 2017 December 31, 2018Percentage of completion 30% 82.5%Estimated cost to complete 1,960,000 840,000 1. What is the total cost incurred in year 2018?A. 4,073,750 C. 1,680,000B. 840,000 D. 3,120,000 2. The realized gross profit (loss) in year 2018 isA. 650,000 C. (. 245,000)B. 405,000 D. (1,055,000) 3. What is the construction cost of sales for year 2018?A. 3,960,000 C. 3,233,750B. 3,120,000 D. 4,478,750 4. What is the construction-in-progress as of 2018?A. 3,423,750 C. 2,065,000B. 3,310,000 D. 2,470,0004SMC entered into a long-term construction contract for 3 years. Contract price agreed was P4,150,000. The outcome of the contract was estimated reliably. The following data were ascertained for the contract:December 31, 2021December 31, 2022Percentage of completion30%82.5%Estimated cost to complete1,960,000840,0001.What is the total cost incurred in year 2022? 1.What is the total cost incurred in year 2022? A.4,073,750 C. 1,680,000. B.840,000. D. 3,120,000 2.The realized gross profit (loss) in year 2022 is A.650,000. C. (. 245,000) B.405,000 D. (1,055,000) 3.What is the construction cost of sales for year 2022? A.3,960,000. C. 3,233,750 B.3,120,000. D. 4,478,750 4.What is the construction-in-progress as of 2022? A.3,423,750. C. 2,065,000 B.3,310,000. D. 2,470,000
- ABC Co. entered into a long term construction contract for 3 years. Contract price agreed was P7,500,000. The following data were ascertained for the contract: Cost incurred for the year Estimated cost at completion 4,700,000 O6,250,000 5,275,000 2020 5,300,000 P1,900,000 The outcome of the contract can be estimated reliably. What is the construction cost for the year 2021? 5,700,000 2021 P5,300,000 800,000 2022 P49,500 ?Suppose that a contract is started on January 1, 2018, with an estimated completion date of December 31, 2019. The final contract price is P1,500,000. In the first year covering January 1 to December 31, 2018: Cost incurred amounted to P600,000. Half the work on the contract was completed. Certificates of work completed have been issued to the value of P750,000. It is estimated with reasonable certainty that further costs to completion in 2019 will be P600,000. Requirements: 1. The contract is certified at what percentage of completion? 2. At Dec 31, 2018, the entity will recognize how much profit? 3. At Dec 31, 2018, the entity will recognize how much contract asset?Duke Ltd has a contract with a customer ongoing at the end of the financial year, 31 December 2020. Details of this contract are as follows:Total contract price £50,000Cost incurred to date £12,000Anticipated future costs £28,000Progress billing - Agreed price for the component completed £14,000Progress is measured using the output method under IFRS 15 Revenue from Contracts with Customers.What amount of revenue is able to be recognised for the year ended 31December 2020?a) £15,000b) £50,000c) £21,000d) £14,000
- Manor Construction Corporation entered into a fixed-price contract to construct an office building for P5,000,000 during the year 2021. Information relating to the contract is as follows: Year-end 2021 Year-end 2022 Percentage of completion 20% 60% Estimated total cost of completion 3,750,000 4,000,000 Income recognized (cumulative) 250,000 600,000 Contract cost incurred during 2022 was: O 1,750,000 2,400,000 O 1,600,000 O 1,650,0002. On January 1, 2020, an entity entered into a long-term construction contract with fixed contract price of P5,000,000. The entity billed its client as follows: 30% during 2020, 40% during 2021 and the remainder at the year of project completion. The following data were provided by the cost accountant of the entity: 2020 2021 2022 Cumulative Cost incurred as of the end of the year P2,200,000 P3,600,000 P4,800,000 Estimated remaining cost to complete at the end of the P3,300,000 P900,000 year 1. What is the excess of construction in progress over progress billings on December 31, 2020 under percentage of completion method, cost-to-cost approach? a. 500,000 b. 200,000 c. 300,000 d. 400,000 2. What is the excess of construction in progress over progress billings on December 31, 2021 under cost recovery method? a. 100,000 b. 500,000 c. 300,000 d. 400,000 3. Assume that an architect hired by the company made the following estimates of the project's percentage of completion at 50%, 90% and…n January 1, 2021, ABC enters into a contract to construct a building for a customer. ABC identifies its performance obligation to satisfied over time. ABC uses the input method based on costs to measure its progress on the contract. The contract price is P9M Information on the construction is provided below: 2021 2022 2023 a. Contract cost incurred per year 2,760,000 3,540,000 500,000 b. Billing per year 50% 25% 25% c. Collections on billings per year d. Estimated costs to complete (at each yr. end) 4,140,000700,000 90% 90% balance Note: Billings per year are stated as percentages of the contract price. The contract is non-cancellable. The collection on billings in 2021 and 2022 are net of 10% retention. "Retention" is an amount withheld by the contracted and payable to the contractor at the end of the contract when the project is completed and accepted. Requirements; a. Compute for the gross profits, 2021 2022 2023