Under the percentage-of-completion method, a company has recognized $40,000 of profit through to the beginning of the current year on a contract, and total estimated contract cost is $500,000 at that time. The contract price is $800,000. What is the percent of completion at the beginning of the current year?
Contract price | 800000 |
Less: Total estimated contract cost | 500000 |
Estimated profit on Contract | 300000 |
Profit recognized | 40000 |
Divide by Estimated profit on Contract | 300000 |
Percent of completion at the beginning of the current year |
13.33% |
Under the percentage-of-completion method, a company has recognized $40,000 of profit through to the beginning of...
Riverbed Construction Company uses the percentage-of-completion
method of accounting. In 2017, Riverbed began work under contract
#E2-D2, which provided for a contract price of $2,195,000. Other
details follow:
2017
2018
Costs incurred during the year
$695,310
$1,404,000
Estimated costs to complete, as of December 31
921,690
–0–
Billings to date
426,000
2,195,000
Collections during the year
352,000
1,475,000
What portion of the total contract price would be recognized as
revenue in 2017? In 2018?
Revenue recognized in 2017
$
Revenue...
Shanahan Construction Company has entered into a contract beginning January 1, 2017, to build a parking complex. It is estimated that the complex will take 3 years to construct. Additional information follows. Estimated cost of complex Contract price AA 600,000 900,000 The following data pertain to the construction period. 2019 610,000 $ 6100 A 2017 270,000 330,000 270,000 240,000 2018 450,000 150,000 550,000 500,000 Costs to date Estimated costs to complete Progress billings to date Cash collected to date $...
Question 10 Blossom Construction Company uses the percentage-of-completion method. During 2018, the company entered into a fixed-price contract to construct a building for Sherman Company for $22870000. The following details pertain to the contract: At December 31, 2018 At December 31, 2019 Percentage of completion 20% 55% Estimated total cost of $14065000 $17130000 contract Gross profit recognized to 2120000 3470000 date The amount of construction costs incurred during 2019 was O $6685000. O $3065000. $9421500. O $6608500.
Tamarisk Construction Company uses the percentage-of-completion method of accounting. In 2017, Tamarisk began work under contract #E2-D2, which provided for a contract price of $2,227,000. Other details follow: 2017 2018 Cost incurred during the year $660240 $1422000 Estimated costs to complete, as of December 31 911760 0 Billings to date 425000 2227000 Collections during the year 347000 1523000 What portion of the total contract price would be recognized as revenue in 2017? In 2018? Revenue recognized in 2017 $______________ Revenue...
Exercise 18-36 Marin Construction Company uses the percentage of completion method of accounting in 2017, Marin began work under contract E2-02, which provided for a contract price of 52,195,000. Other details follow 2017 2018 Costs incurred during the year 5695,310 $1,404,000 Estimated costs to complete, as of December 31921,690 0 Billings to date 426,000 2,195,000 Collections during the year 352,000 1,475,000 What portion of the total contract price would be recognized as revenue in 2017? In 2018? Revenue recognized in...
Hamilton Construction Company uses the percentage-of-completion method of accounting. In 2020, Hamilton began work on the construction of a hospital, which provides for a contract price of $2,195,000. Other details follow: 20XO 20X1 Costs incurred during the year 637,600 1,000,000 Total estimated cost 1,594,000 1,637,600 Billings during the year 427,000 2,195,000 Collections during the year 343,000 1,509,000 What portion of the total contract price would be recognized as revenue in 20x0? 2,195,000 878,000 1,097,500 427,000 343,000
Exercise 18-36 Coronado Construction Company uses the percentage-of-completion method of accounting. In 2017, Coronado began work under contract #E2-D2, which provided for a contract price of $2,234,000. Other details follow: 2017 2018 Costs incurred during the year $615,980 $1,420,000 Estimated costs to complete, as of December 31 1,005,020 -0- Billings to date 413,000 2,234,000 Collections during the year 351,000 1,530,000 What portion of the total contract price would be recognized as revenue in 2017? In 2018? Revenue recognized in 2017...
QUESTION 5 Not yet answered Marked out of 1.00 Flag question Percentage-of-Completion and Completed Contract Methods Philbrick Company signed a three-year contract to provide sales training to the employees of Elliot Company. The contract price is $1,200 per employee and the estimated number of employees to be trained is 400. The expected number to be trained in each year and the expected training costs follow Number of Training Costs Employees Incurred 2016 125 $60,000 2017 200 75,000 40,000 75 2018...
A company has a contract to build a bridge for $100,000 with an estimated time to completion of three years. A reliable total cost estimate for the project would be $60,000. In the first year of the project, the company incurred a cost of $24,000. (a) Assume that the contractor bases the degree of completion on the percentage of total costs incurred to date. Under the percentage-of-completion method, what amount of gross profit the company will report in the first...
Pronghorn Construction Company has entered into a contract
beginning January 1, 2020, to build a parking complex. It has been
estimated that the complex will cost $596,000 and will take 3 years
to construct. The complex will be billed to the purchasing company
at $894,000. The following data pertain to the construction
period.
2020
2021
2022
Costs to date
$274,160
$417,200
$607,000
Estimated costs to complete
321,840
178,800
–0–
Progress billings to date
272,000
550,000
894,000
Cash collected to date...