Question

Question 5 Partially correct Mark 1.00 out of 15.00 P Flag question Computing Percentage-of-Completion Revenues Bartov Corporation agreed to build a warehouse for $3,000,000. Expected and actual) costs for the warehouse follow: 2016, $500,000 2017, $1,400,000 and 2018, $600,000. The company completed the warehouse in 2018. Compute revenues, expenses, and income for each year 2016 through 2018 using the percentage-of-completion method. Round percentages to the nearest whole percent. Use rounded percentages to calculate subsequent answers. Year Costs incurred % of total expected costs Revenue Income 2016 $ 500,000 10.2 x S 306,000 x $ 194,000 x 2017 1,900,000 X 38. x 857,100 x 542,900 x 2018 2.500.000 x 51.02 XS 673,500 x 73,500 x $ 4,900,000 x $ 1,836,600 * $ 310,400 x

Answer 1

Stepi" calculation of % of completion Cost incurred during the real cumulative cost % of completion 500,000x100 = 204. 2016 $500,000 $500,000 25,00,000 2017 $1,400,000 $19,000,000 19,00,000_xioo 767. 259,90 25,000,00 2018 $ 600,000 $9500,000 95.00p, DOC X100 = 100. 25.000 to $ 25000,000 Ee income to be Stepiz calculation recognised of revenue each year. year 2016 Revenue = $3,000,000 x 207. - $ 600,000 expense - ($ 500,000) income $ 100,000 year, -2017 Revenue- $3,000,000 x [yox. - 20x) = $3,000,000 X 567 = $ 1,680,000 expense = $1,400,000 in come = $1,680,000 - $1,400,000 = $ 280,000

year 2018 Revenue - $3,000,000 X (100%._ 76%) 000,000 x 24 = $ 120,000 expense = $600,000 income - $720,000 - $600,000 = $120,000 year Costincassed t. of total Revenue income expected cost 2016 $500,000 20% 2017 $1,400,000 564, $ 600,000 $11630,000 $720,000 $100,000 $280,000 $120,000 2018 $ 600,000 241 $25,000,000 100 $3,000,000 $500,000