January 1, 2020, San Juan Builders Inc. accepted a long-te e outcome of the construction project can be estimated re ploy cost to cost method. The following data are provided ncerning the contract price and construction costs for the

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A:

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A:

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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.