Yellow. Arrow Construction. Co. has consistently used the percentage-of-completion method of recognizing revenue. During 2018, Yellow Arrow entered into a fixed-price contract to construction an office bundling for P12,000,000. Information relating to the contract is as follows: At December 31 2018 2019 Percentage of completion Estimated total cost at completion Gross profit recognized (cumulative) 15% 45% P9,000,000 600,000 P9,600,000 1,440,000 How much is the contract costs incurred during 2019?

Yellow. Arrow Construction. Co. has consistently used the percentage-of-completion method of recognizing revenue. During 2018, Yellow Arrow entered into a fixed-price contract to construction an office bundling for P12,000,000. Information relating to the contract is as follows: At December 31 2018 2019 Percentage of completion Estimated total cost at completion Gross profit recognized (cumulative) 15% 45% P9,000,000 600,000 P9,600,000 1,440,000 How much is the contract costs incurred during 2019?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 9MC

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