Marigold Construction Company began operations on January 1, 2020, During the year, Marigold Construction entered into a contract with Luhdquist Corp. to construct a manufacturing facility. At that time, Marigold estimated that it would take 5 years to complete the facility at a total cost of $4,501.00O. The total contract price for construction of the facility is $6.031.000, During the year, Marigold incurred $1,083,200 in construction costs related to the construction project. The estimated cost to complete the contract is $4,332.800. Lundquist Corp. was billed and paid 26% of the contract price. Prepare schedules to compute the amount of gross proft to be recognized for the year ended December 31. 2020, and the amount to be shown as "costs and recognized pront in excess of billings or "billings in excess of costs and recognized pront" at December 31, 2020, under each of the following methods. (Enter negative amounts using elther a negotive sign preceding the number eg 45 or parentheses eg. (45). Iif answer is 0, please enter 0. Do not leave any fields blank.) (a) Completed-contract method. Gross Profit to be recognized
Marigold Construction Company began operations on January 1, 2020, During the year, Marigold Construction entered into a contract with Luhdquist Corp. to construct a manufacturing facility. At that time, Marigold estimated that it would take 5 years to complete the facility at a total cost of $4,501.00O. The total contract price for construction of the facility is $6.031.000, During the year, Marigold incurred $1,083,200 in construction costs related to the construction project. The estimated cost to complete the contract is $4,332.800. Lundquist Corp. was billed and paid 26% of the contract price. Prepare schedules to compute the amount of gross proft to be recognized for the year ended December 31. 2020, and the amount to be shown as "costs and recognized pront in excess of billings or "billings in excess of costs and recognized pront" at December 31, 2020, under each of the following methods. (Enter negative amounts using elther a negotive sign preceding the number eg 45 or parentheses eg. (45). Iif answer is 0, please enter 0. Do not leave any fields blank.) (a) Completed-contract method. Gross Profit to be recognized
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter27: Lean Manufacturing And Activity Analysis
Section: Chapter Questions
Problem 18E: Cost of quality and value-added/non-value-added reports for a service company A. Using the...
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