What amount of RGP should be reported for the current year if the percentage of completion method is used for all contracts? The Soriano Builders Construction Co. started work on three job sites during the current year. Data relatingto the three jobs are given below:SiteContract Price Cost Incurred Estimated Cost to Complete Billings on Contract Collections onContractP500,000500,000100,000400,00050,000Cebu375,000Davao700,000Palawan 250,000100,000100,000400,000100,000

Answered: What amount of RGP should be reported…

What amount of RGP should be reported for the current year if the percentage of completion method is used for all contracts?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 3PA: Pocono Cement Forms expects $900,000 in overhead during the next year. It does not know whether it...

See similar textbooks

Related questions

Q: dentify and explain, in your own words, the five (5) fundamental ethical principles that apply to al...

A: Professional Ethics It is important for the professional Accountant should have the professional eth...

Q: ich of the following is true of accounting for changes in estimates? a. A company recognizes a chan...

A: Solution: A change in estimate occurs due to change in any available information which changes the c...

Q: Equipment was purchased at the beginning of 2019 for $740000. At the time of its purchase, the equip...

A: Solution: Cost of equipment = $740,000 Initial estimated salvage value = $89,000 Useful life = 6 yea...

Q: Which of the following is not an administrative remedy available to the government?

A: Answer: C. Tax Avoidance

Q: 2) How do disclosure and analysis help users of financial statements assess performance?

A: Financial analysis and reporting can help you answer lots of new important questions about your comp...

Q: Ivanhoe Leasing Company agrees to lease equipment to Shamrock Corporation on January 1, 2020. The fo...

A: Lessor Company: Lessor Company is an entity that permits other entity to utilize their asset for som...

Q: 12) MNO Company operates a retail store and must determine the proper December 31, 2020, year-end ac...

A: Accrued liabilities refer to the amount which is payable to the outsiders within the next operating ...

Q: You are required show ALL supporting workings where necessary and state any assumption(s) made. Gre...

A: The question is related to Cost Volume Profit Analysis. The Sellling Price is calculated with the he...

Q: What are your thoughts on the misappropriation of funds? Government budgets prevent public official...

A: Government budget shows the expenditure and total income that government has.it can be either capita...

Q: Tamarisk Cole Inc. acquired the following assets in January of 2018. Equipment, estimated service ...

A: a) Journal entry :- Sl no Account title and explanation Debit ($) Credit ($) 1) Depreciation ex...

Q: Abdulla Co. issues 4,000 shares of $90 par value preferred stock for cash at $100 per share. Choose ...

A: Given information: No of shares issued 4000 shares Par value $90 Issue price $100

Q: The primary objective of financial reporting is to provide information?

A: The primary objective of financial reporting is to provide information relating to financial positio...

Q: s a prospective member of the accounting profession detail what you consider to be the four (4) most...

A: competent professional accountant in business is considered to be Paramount and invaluable assets fo...

Q: Equivalent Units of Production The Converting Department of Comfy Touch Towel and Tissue Company ha...

A: Equivalent units can be described as total units produced if no work in process is available.

Q: Directions: Establish the following T-Accounts. Write your answers on a separate sheet of paper. Mas...

A: The t-accounts are prepared to record the transactions to specific accounts and find the final balan...

Q: Jay Mercado Photocopying Center July 31,2015 July 1- Mr. Mercado invested cash of P30,000 in the bus...

Q: 's and would like to earn a long-run i ka division will change its unit selling is return. The follo...

A: Tokyo Company has invested 1,400,000 in the business and desires to make a profit of 20% on its inve...

Q: The maintenance of a room air conditioner is expected to be P 200,000 at the end of the first year a...

A: The sum of money to be set aside now for the future maintenance of the room = Present Value of Cash ...

Q: Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets ...

A: Debt to equity ratio = Total liabilities / Total equity where, Total liabilities = Accounts payable ...

Q: requirea iNtormation Exercise 13-9 Analyzing risk and capital structure LO P3 [The following informa...

A: 1. Debt Ratio - Debt Ratio shows the Total Debt available with the company compared to Total Assets....

Q: shes to calculate a project's present worth with estimated costs of Php 1.69M now and Php 350,000 pe...

A: The answer has been mentioned below.

Q: Ningning Company makes a white liquid substance that is used to cover errors made on printed documen...

A: Solution... Standard quantity = Actual output * standard quantity per unit = 900,000 units * ...

Q: A. The following data about Grabs' inventory and purchases from May are available: Beginning Invento...

A: Inventory Valuation Method - There are 3 methods of inventory valuation - a. FIFO - In this method i...

Q: Question Content Area Cost of Production Report Mochaccino Express Coffee Company roasts and pac...

A: The total cost of producing a product, including raw materials and operating costs, is detailed in a...

Q: differentiate and give illustrations of the difference between FIFO and Weighted Average.

A: Inventory Valuation - There are three method using which company can value their inventory a. FIFO b...

Q: Consider the balance sheet for Inspired to Thrive (IT) Bank below: Inspired to Thrive Bank Balance S...

A: Leverage ratio = Debt to Equity Ratio = Debt/Equity Debt to Capital ratio = Debt/Total Capital Debt ...

Q: Itzy Corporation provides the following information for the month of February based on the productio...

A: Under Variable Costing all Variable manufacturing costs are included in the product Cost. All Fixed ...

Q: Cullumber Corporation had the following transactions. 1. Sold land (cost $12,200) for $15,300. 2...

A: Journal entry - It refers to the process where the business transactions are recorded in the books o...

Q: What is the EI expense?

A: EI expense Employment Practices Liability Insurance is what Employment Insurance stands for. Employ...

Q: Determining ending inventorY using the retail inventory method Mighty Kingdom Company used the retai...

A: In this question, we will calculate the estimated cost by 3 methods: 1) Cost of ending inventory by ...

Q: Schultz Electronics manufactures two ultra high-definition television models: the Royale which sells...

A: Royale Majestic Purchasing 1417500 x 17700/40500 =619500 1417500 x 22800/40500 =798000 Mac...

Q: 7) In On December 31, 2020, an adjusting entry was made to accrue interest for a P60,000, 120-day, 8...

A: Formula for interest calculation : Interest amount = Principal X Rate of interest X Number of days o...

Q: This refers to the process of taxation to determine the amount of tax based on existing tax laws.

A: Answer: b. Imposition

Q: n 2021, Ehrlich Corporation reported net income of $700,000. It declared and paid preferred stock di...

A: Solution: Earnings per share is the monetary value of earnings per outstanding share of common stock...

Q: Haribo has manufactured gummy bears, since 1920. Those bears are currently made in 16 plants around ...

A: given Give several examples of manufacturing overhead costs that are likely to be incurred by Haribo...

Q: Southland Company is preparing a cash budget for August. The company has $17,900 cash at the beginni...

A: Solution... Beginning cash balance = $17,900 Cash receipt = $122,600 Cash disbursement = $135,...

Q: Cost of long-term asset = $50,000 Accumulated Depreciation = S25,000 Sales price of L-T asset = $30,...

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...

Q: You are an audit senior in Riskam and Co and you are commencing the planning of the audit of CariBev...

A: Answer:- Audit risk definition:- Audit risks are those risks where, auditor sometimes not able to d...

Q: Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets ...

A: Times interest earned = Earnings before interest and tax (EBIT) / Interest expense where, EBIT = Net...

Q: Question text 16 A pension liability is reported when Select one: а. the accumulated benefit obligat...

A: As per IAS 19 Employee Benefits, Pension liability is the obligation with respect to pension plans....

Q: Puffin Corporation makes a property distribution to its sole shareholder, Bonnie. The property distr...

A: A dividend is a payment made by a corporation to its stockholders. When a company makes a profit or ...

Q: Fundamentals in Accounting, Business and Management1 Journalizing Transaction Practice INSTRUCTION: ...

A: Recording journal entries in the books of account is a process in which each identified transaction ...

Q: Ann's average income tax rate is 30%, and her marginal income tax rate is 37%. Her property tax bill...

A: Solution:- Given, Average tax rate = 30% Marginal tax rate = 37% Tax bill = 12,000 Interest payment ...

Q: E9-8 (Algo) Computing and Recording Double-Declining-Balance Depreciation [LO 9-3] Turquoise Asso...

Q: Consider a student loan of $12,500 at a fixed APR of 12%for 25 years. What is the monthly payment...

A: Monthly Payment: Monthly payments let a borrower to pay down part of the remaining sum, which is com...

Q: An entity recognized the following transactions during 2019: The entity estimated its annual warrant...

A: 8.Warrany expenses for the year ended December 31, 2019 is b. 1080000 Provision for liability. ...

Q: Which of the following journal entries would be recorded when an entity contributes cash to its defi...

A: Journal Entry for Contribution to Defined Benefit Pension Plan will be: Defined Befit Pension Liabil...

Q: 1.) On January 1, 2007, Red Velvet Co. issued its 10% bonds in the face amount of P3,000,000, which ...

A: Since you have asked multiple question, we will solve the first question for you. If you want any sp...

Q: Wildcat, Incorporated, has estimated sales (in millions) for the next four quarters as follows: Q3 Q...

A: The question is based on the concept of Cost Accounting.

Q: On December 31, 2021 Carla Vista Company changed its method of accounting for inventory from weighte...

A: An increase in beginning inventory due to a change in the method of inventory decreases the profit. ...

Concept explainers

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.

Question

What amount of RGP should be reported for the current year if the percentage of completion method is used for all contracts?

The Soriano Builders Construction Co. started work on three job sites during the current year. Data relating
to the three jobs are given below:
Site
Contract Price Cost Incurred Estimated Cost to Complete Billings on Contract Collections on
Contract
P500,000
500,000
100,000
400,000
50,000
Cebu
375,000
Davao
700,000
Palawan 250,000
100,000
100,000
400,000
100,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Coops Stoops estimated its annual overhead to be $85,000 and based its predetermined overhead rate on 24,286 direct labor hours. At the end of the year, actual overhead was $90,000 and the total direct labor hours were 24,100. What is the entry to dispose of the over applied or under applied overhead?
When setting its predetermined overhead application race, Tasty Box Meals estimated its overhead would be $100,000 and would require 25,000 machine hours in the next year. At the end of the year. It found that actual overhead was $102,000 and required 26,000 machine hours. Determine the predetermined overhead rate. What is the overhead applied during the year? Prepare the journal entry to eliminate the under applied or over applied overhead.
During the month, Job Arch2 used specialized machinery for 350 hours and incurred $700 in utilities on account. $400 in factory depreciation expense, and $200 in property tax on the factory. Prepare journal entries for the following: A. Record the expenses incurred. B. Record the allocation of overhead at the predetermined rate of $1.50 per machine hour.
The post-closing trial balance of Custer Products, Inc. on April 30 is reproduced as follows: During May, the following transactions took place: a. Purchased raw materials at a cost of 45,000 and general factory supplies at a cost of 13,000 on account (recorded materials and supplies in the materials account). b. Issued raw materials to be used in production, costing 47,000, and miscellaneous factory supplies costing 15,000. c. Recorded the payroll and the payments to employees as follows: factory wages (including 12,000 indirect labor), 41,000; and selling and administrative salaries, 7,000. Additional account titles include Wages Payable and Payroll. (Ignore payroll withholdings and deductions.) d. Distributed the payroll in (c). e. Recognized depreciation for the month at an annual rate of 5% on the building, 10% on the factory equipment, and 20% on the office equipment. The sales and administrative staff uses approximately one-fifth of the building for its offices. f. Incurred other expenses totaling 11,000. One-fourth of this amount is allocable to the office function. g. Transferred total factory overhead costs to Work in Process. h. Completed and transferred goods with a total cost of 91,000 to the finished goods storeroom. i. Sold goods costing 188,000 for 362,000. (Assume that all sales were made on account.) j. Collected accounts receivable in the amount of 345,000. k. Paid accounts payable totaling 158,000. Required: 1. Prepare journal entries to record the transactions. 2. Set up T-accounts. Post the beginning trial balance and the journal entries prepared in (1) to the accounts and determine the balances in the accounts on May 31. 3. Prepare a statement of cost of goods manufactured, an income statement, and a balance sheet. (Round amounts to the nearest whole dollar.)
During the month, Job AB2 used specialized machinery for 450 hours and incurred $500 in utilities on account, $300 in factory depreciation expense, and $100 in property tax on the factory. Prepare journal entries for the following: A. Record the expenses incurred. B. Record the allocation of overhead at the predetermined rate of $1.50 per machine hour.
York Company Is a machine shop that estimated overhead will be $50,000, consisting of 5,000 hours of direct labor. The cost to make job 0325 is $70 in aluminum and two hours of labor at $20 per hour. During the month. York incurs $50 in indirect material cost. $150 in administrative labor, $300 in utilities, and $250 in depreciation expense. What is the predetermined overhead rate if direct labor hours are considered the cost driver? What is the cost of Job 0325? What is the overhead incurred during the month?
Event Forms expects $120,000 in overhead during the next year. It doesn't know whether it should apply overhead on the basis of its anticipated direct labor hours of 6,000 or its expected machine hours of 5,000. What would be the product cost under each predetermined allocation rate if the last job incurred $3,500 in direct material cost, 55 direct labor hours, and 55 machine hours? Wages are paid at $17 per hour.
Queen Bees Honey, Inc., estimated its annual overhead to be $110,000 and based its predetermined overhead rate on 27,500 direct labor hours. At the end of the year, actual overhead was $106,000 and the total direct labor hours were 29,000. What is the entry to dispose of the over applied or under applied overhead?
A company has the following transactions during the week. Purchase of $3,000 raw materials inventory Assignment of $700 of raw materials inventory to Job 7 Payroll for 10 hours and $3,000 is assigned to Job 7 Factory depreciation of $1,750 Overhead applied at the rate of $200 per hour What is the cost assigned to Job 7 at the end of the week?
Prepare the journal entry to record the factory wages of $25,000 incurred in the processing department and $15,000 incurred in the production department assuming payment will be made in the next pay period.
Prepare the journal entry to record the factory wages of $28,000 incurred for a single production department assuming payment will be made in the next pay period.
When setting its predetermined overhead application rate. Tasty Turtle estimated its overhead would be $75,000 and manufacturing would require 25,000 machine hours in the next year. At the end of the year, it found that actual overhead was $74,000 and manufacturing required 24,000 machine hours. Determine the predetermined overhead rate. What is the overhead applied during the year? Prepare the journal entry to eliminate the under- or over applied overhead.