PARAMOUR Co. was contracted by LOVER, Inc. for the construction of a flyover in 20x1. The contract price is P10M. Information on costs is as follows: 20x1 20x2 Total costs incurred to date 1,600,000 6,000,000 Estimated costs to complete 6,400,000 1,500,000 How much revenue is recognized in 20x2?
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- Tyro Construction Company has two projects, for which it reported, as of December 31, 20x5, thefollowing information: In thousand: Project A Project B Contract price 4,800 860 20x4: Costs incurred 3,400 Percent completed 75% 20x5: Costs incurred 1,250 140 Percent completed 25% 15% Using the percentage-of-completion (overtime) method of revenue recognition, gross profit on Project Ato be recognized in 20x4 would be:Tyro Construction Company has two projects, for which it reported, as of December 31, 20x5, the following information: In thousand pesos: Project A Project B Contract Price P 4,800 860 20x4: Costs incurred P 3,400 Percent completed 75% 20x5: Costs incurred P 1,250 140 Percent Completed 25% 15% Using the percentage-of-completion (over time) method of revenue recognition, gross profit on Project A to be recognized in 20x4 would be: a. P 200,000 ] b. P 300,000On September 1, 20x1, ABC Co. enters into a contract with a customer to remodel a plant's electrical wirings and install a new generator for a total consideration of P12. The remodeling and the installation are treated as a single performance obligation satisfied over time. The expected contracts costs are as follows: Generator 4,000,000 Other costs 5,000,000 Expected total contract costs 9,000,000 Additional information: ABC Co. uses the cost-to-cost method in measuring its progress towards the complete satisfaction of the performance obligation. ABC Co. incurs total costs of P6,000,000 in 20x1, including the cost of the generator. The customer obtains control of the generator when it is delivered to the site in December 20x1. However, the generator will not be installed until March 20x2. ABC Co. regards the cost of the generator as significant in…
- Athena Co. started work on an P8M fixed-price construction contract in 20x1. Information on the contract is as follows: 20x1 20x2 20x3 Costs incurred per year 2,850,000 3,670,000 1,600,000 Estimated costs to complete 4,275,000 1,630,000 - Requirement: Compute for the amounts recognized in profit or loss in 20x1, 20x2, 20x3, respectively.In 20x1, Silverchair Co., a construction company, enters into a contract with a customer for the construction of a building. The contract states a fixed fee of P8,700,000. Silverchair's performance obligation in the contract is satisfied over time. Silverchair uses the 'cost-to-cost method in measuring its progress in the contract. Information on the contract follows: 20x1 20x2 Estimated total costs at completion 6,525,000 6,960,000 Percentage of completion 15% 65% How much is the profit recognized in 20x2?Brooksville Construction began a construction project in 20x5. The contract price was P1,250,000, and the estimated costs were P1,000,000. Data for each year of the contract are as follows: 20x5 20x6 20x7 Costs incurred during the year P 250,000 P 600,000 P 190,000 Estimated costs to complete 750,000 212,500 -0- Partial billings 375,000 500,000 375,000 Collections 187,500 469,000 593,500 Assuming Brooksville uses the percentage-of-completion method of revenue recognition, determine: What is the balance of Construction in Progress at the end of 20x5.
- Batanes Construction Company recognized gross loss of P42,000 on its long-term project which has accumulated costs of P490,000. To finish the project, the company estimates that it must incur additional cost of P735,000. The contract price is:* a. P798,000 b. P1,330,000 c. P1,225,000 d. P1,183,000In 20x1, Salamagi Co. entered into a contract with a customer. The contract stipulates the following: Contract price of ₱20,000,000 5% mobilization fee due upon signing of the contract, to be deducted from the final billing 10% customer retention on all subsequent progress billings, to be paid to Salamagi on completion of the project. Salamagi Co. estimated a ₱5,000,000 gross profit from the project. The percentage of completion method will be used. In 20x1, Salamagi billed the customer for 50% completion of the project. The customer accepted all the billings, except one for 10% which was accepted on January of the following year. All the accepted billings were collected during the year except an 8% billing which was due January of the following year. What is the amount of profit recognized from the contract in 20x1? 2,500,000 c. 2,720,000 2,650,000 d. 2,900,000 What is the total amount of collections from the billings in 20x1? 5,760,000 c. 6,760,000 6,400,000 d.…A Construction Co. entered into a P80M fixed price contract for the construction of a private road. The performance obligation on the contract is satisfied over time. Contractor measures its progress on the contract using the “cost-to-cost” method. The estimated total contract cost is P40M. The following were the actual costs incurred during the first year of the construction: Costs of negotiating the contract (charged immediately as expense) 400,000 Costs of materials used in construction 12,000,000 Costs of materials purchased but not yet used in construction 2,000,000 Site labor costs 4,000,000 Site supervision costs 800,000 Depreciation of equipment used in construction 480,000 Depreciation of idle construction equipment 240,000 Costs of moving plant, equipment, and materials to and from the contract site 160,000 Costs of hiring plant and equipment 560,000 Advance payments to subcontractors (subcontracted work is not yet started) 80,000 What is the percentage of completion…
- DMCI entered into a fixed price contract for the construction of a road for Camella Corp. DMCI determines the stage of completion of construction contracts using the “cost to cost method”. The estimated total contract cost is P50 million. The following were the total actual costs incurred by DMCI during the first year of the construction: Cost of negotiating the contract (charge immediately as expense) 500,000 Costs of hiring equipment 700,000 Costs of materials purchased but not yet used in construction 2,500,000 Costs of materials used in construction 15,000,000 Costs of moving plant, equipment and materials to and from the contract site 200,000 Depreciation of equipment used in construction 600,000 Depreciation of idle construction equipment 300,000 Site labor costs 5,000,000 Site supervision costs 1,000,000 How much is the cost incurred to date?Eminem Company recognized gross profit of P720,000 on its long-term project which has accumulated costs of P2,880,000. To finish the project, the company estimates that it has to incur additional costs of P1,920,000. Determine the contract price.In 20x1, XYZ Company enters into a construction contract with a customer. The contract price is P10,000,000.Information on the contract follows:20X1 20X2 20X3Contract costs incurred during the year P2,645,132 P236,451 P2,657,000Estimated costs to complete 2,697,451 2,116,777 -Progress Billings 5,000,000 3,000,000 2,000,000Collections on progress billings 2,000,000 4,000,000 4,000,000 Using the cost-to-cost method, Note: Use up to two (2) decimal places in presenting the answer for percentage of completion. Use six (6)decimal places when applying the percentage.1. Percentage of completion for 20x1 _____________2. Revenue that should be recognized in 20x1 _____________3. Realized gross profit in 20x1 _____________4. Balance of "Contract Liability" at the end of 20x1 _____________