JC Construction, Inc. has consistently used the percentage of completion method of recognizing  income. During 2018 JC started work on a P3,000,000 fixed price construction contract. The  accounting records disclosed the following data for the year ended December 31, 2018:  Cost incurred P930,000  Estimated Cost to Complete 2,170,000  Progress Billings 1,100,000  Collections 700,000  How much loss should JC have recognized in 2018

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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.