As of December 31, 2020, Andrei Corporation has P 5,000,000 contract in progress on which the following information is given.   Cost Incurred to date 2018 P 640,000  2019 P 2,496,000  2020 P 4,046,000    Est. cost to complete at year-end 2018 P 2,560,000 2019 P 1,404,000 2020 P 0 How much should be the reported income for 2018 under the percentage of completion method of recognized income? How much should be the reported income for 2019 under the percentage of completion method of recognized income

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A: This question deals with the concept of percentage of completion method. In this method, revenue get…

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A: PLEASE LIKE THE ANSWER   2020 Percentage completion = Costs to date / Estimated total costs…

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A: Meaning: A journal entry is the first step and an essential function of the accounting process.…

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A: Percentage-of-completion method:- Percentage-of-completion method is termed as the contract method,…

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A: Percentage-of-Completion Method: It refers to an accounting method which is used to record revenues…

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A: The percentage of completion method is used to recognize revenue from a project for a certain time…

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Q: percentage-of-completion method

A: Under percentage of completion method is a revenue recognition method under which revenues and…

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A: Gross profit reported= Total gross profit * Percentage of completion.

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Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.