Required information [The following information applies to the questions displayed below.] In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2020. Information related to the contract is as follows: 2018 2019 2020
Cost incurred during the year $ 2,204,000 $ 3,192,000 $ 2,424,400
Estimated costs to complete as of year-end 5,396,000 2,204,000 0
Billings during the year 2,140,000 3,256,000 4,604,000
Cash collections during the year 1,870,000 3,200,000 4,930,000
Westgate recognizes revenue over time according to percentage of completion.
4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.) 2018 2019 2020
Cost incurred during the year $ 2,204,000 $ 3,870,000 $ 3,270,000
Estimated costs to complete as of year-end 5,396,000 3,170,000 0
Solution 4:
Computation of % of completion, revenue recognition and Gross Profit - Westgate Construction Company | ||||||||
Year | Actual cost incurred (A) | Total cost incurred till date (B) | Total estimated Cost ( C ) | % of completion (D) (B/C) |
Contract Price (E) |
Total Revenue to be recoganized (F) (E * D) | Revenue for current period (G) | Gross Profit (H) |
2018 | $2,204,000 | $2,204,000 | $7,600,000 | 29.00% | $10,000,000 | $2,900,000 | $2,900,000 | $696,000 |
2019 | $3,870,000 | $6,074,000 | $9,244,000 | 65.71% | $10,000,000 | $6,570,749 | $3,670,749 | -$199,251 |
2020 | $3,270,000 | $9,344,000 | $9,344,000 | 100.00% | $10,000,000 | $10,000,000 | $3,429,251 | $159,251 |
Required information [The following information applies to the questions displayed below.] In 2018, the Westgate Construction...
Required information [The following information applies to the questions displayed below.] In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2020. Information related to the contract is as follows: 2018 2019 2020 Cost incurred during the year $ 2,204,000 $ 3,192,000 $ 2,424,400 Estimated costs to complete as of year-end 5,396,000 2,204,000 0 Billings during the year 2,140,000 3,256,000 4,604,000 Cash collections during the...
Required information [The following information applies to the questions displayed below.] In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2020. Information related to the contract is as follows: 2018 2019 2020 Cost incurred during the year $ 2,204,000 $ 3,192,000 $ 2,424,400 Estimated costs to complete as of year-end 5,396,000 2,204,000 0 Billings during the year 2,140,000 3,256,000 4,604,000 Cash collections during...
In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2020. Information related to the contract is as follows: 2018 2019 2020 Cost incurred during the year $ 2,204,000 $ 3,192,000 $ 2,424,400 Estimated costs to complete as of year-end 5,396,000 2,204,000 0 Billings during the year 2,140,000 3,256,000 4,604,000 Cash collections during the year 1,870,000 3,200,000 4,930,000 Westgate recognizes revenue over time according to...
PLEASE HELP WITH ACCTG HW Required information [The following information applies to the questions displayed below.] In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows: 2022 2021 2023 $3,192,000 2,204,000 3,256,000 3,200,000 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year $2,204,000 5,396,000...
Required information [The following information applies to the questions displayed below.) In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows: 2023 $2,424, 400 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 2021 $2,204,000 5,396,000 2,140,000 1,870,000 2022 $3,192,000 2,204,000 3,256,000 3,200,000 4,604,000...
PLEASE HELP WITH ACCTG HW Required information (The following information applies to the questions displayed below.) In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows: 2023 $2,424,400 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 2021 $ 2,204,000 5,396,000 2,140,000 1,870,000 2022...
Required information (The following information applies to the questions displayed below.] In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2020. Information related to the contract is as follows: 2020 $1,940,400 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 2018 $ 2,604,000 5,796,000 2,040,000 1,820,000 2019 $4,032,000 1,764,000 4,596,000 4,000,000 3,364,000...
Required information [The following information applies to the questions displayed below. In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2020. Information related to the contract is as follows 2019 $2,542,000 $3,772,000 $2,074,600 1,886,000 2,020,000 4,294,0003,686,000 1,810,000 3,800,000 4,390,000 2018 2020 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 5,658,000 Westgate...
Required information [The following information applies to the questions displayed below.] In 2018, the Westgate Construction Company entered intoo a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2020. Information related to the contract is as follows: 2018 2019 2020 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year $4,032,000 1,764,000 4,596,000 4,000,000 $2,604,000 5,796,000 2,040,000 1,820,000 $1,940,400 3,364,000 4,180,000...
Required information The following information applies to the questions displayed below) In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2020. Information related to the contract is as follows: 2020 $2,200,000 Coat incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year 2018 $2,400,000 5,600,000 2,000,000 1,800,000 2019 $3,600,000 2,000,000 4,000,000 3,600,000 4,000,000 4,600,000...