During 2021, Cord Builders, Inc. work on a P9,000,000 fixed-price construction contract that was completed in 2022. Cord's accounting records disclosed the following: 2021 2022 Cumulative contract costs incurred 3,900,000 6,300,000 Estimated total cost 7,800,000 8,100,000 Compute for the Gross Profit using the following methods: Year 2021 Year 2022 Completed Contract Method Zero Profit Method Percentage of Completion Method
During 2021, Cord Builders, Inc. work on a P9,000,000 fixed-price construction contract that was completed in 2022. Cord's accounting records disclosed the following: 2021 2022 Cumulative contract costs incurred 3,900,000 6,300,000 Estimated total cost 7,800,000 8,100,000 Compute for the Gross Profit using the following methods: Year 2021 Year 2022 Completed Contract Method Zero Profit Method Percentage of Completion Method
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 9MC
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