Question

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: ear-end Cost incurred during the year Estimated costs to complete as o Billings during the year Cash collections during the year 2018 $2,059,000 5,041,000 2,190,000 1,895,000 2019 $2,627,000 2,414,000 2,496,000 2,400,000 2020 $2,655,400 0 5,314,000 5,705,000 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.) Cost incurred during the year Estimated costs to complete as of year-end 2018 $2,059,000 5,041,000 2019 $3,895,000 3,195,000 2020 $3,295,000 0

What is the revenue and gross profit?

Answer 1

	2018	2019	2020
Revenue	$29,000,000	$5,485,915	$4,640,845
Gross Profit	$ 841,000	$1,590,915	$1,345,845