Requirement (a)
Particulars | 2020 | 2021 | 2022 |
Price | 909000 | 909000 | 909000 |
Estimated costs: | |||
Cost to date:(a) | 254100 | 496100 | 614000 |
Estimated cost to complete(b) | 350900 | 108900 | 0 |
Estimated total costs(a+b) | 605000 | 605000 | 614000 |
Estimated gross profit(Price-est.total cost) | 304000 | 304000 | 295000 |
Gross Profit Recognized | |||
($254100/$605000) X $304000 | 127,680 | ||
($496100/$605000 X 304000)- $127,680 | 121,600 | ||
$295,000-$127,680-121,600 | 45,720 |
Requirement (b)
2020: No gross profit would be recognized
2021:No gross profit would be recognized
2022:
Total Price $909,000
Total Cost ($614000)
Gross Profit recognized (2022) = $295,000
Problem 18-09 Sweet Construction Company has entered into a contract beginning January 1, 2020, to build...
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...
Waterway 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 $598,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $897,000. The following data pertain to the construction period. 2020 2021 2022 Costs to date $275,080 $412,620 $607,000 Estimated costs to complete 322,920 185,380 –0– Progress billings to date 272,000 545,000 897,000 Cash collected to date...
Problem 18-09 Shamrock 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 $601,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $903,000. The following data pertain to the construction period. 2020 2021 2022 Costs to date $270,450 $492,820 $613,000 Estimated costs to complete 330,550 108,180 –0– Progress billings to date 273,000 550,000 903,000 Cash collected...
Bramble 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 $606,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $902,000. The following data pertain to the construction period. 2020 2021 2022 Costs to date $272,700 $466,620 $618,000 Estimated costs to complete 333,300 139,380 –0– Progress billings to date 273,000 546,000 902,000 Cash collected to date...
Ivanhoe 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 $599,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $905,000. The following data pertain to the construction period 2020 2021 2022 Costs to date $257,570 $413,310 $609,000 Estimated costs to complete 341,430 185,690 –0– Progress billings to date 270,000 551,000 905,000 Cash collected to date...
Grouper 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 $606,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $896,000. The following data pertain to the construction period. 2020 2021 Costs to date Estimated costs to complete Progress billings to date Cash collected to date $266,640 339,360 270,000 240,000 $412,080 193,920 545,000 495,000 2022 $617,000...
Pearl 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 $606,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $902,000. The following data pertain to the construction period. Costs to date Estimated costs to complete Progress billings to date Cash collected to date 2020 2021 2022 $272,700 $466,620 $618,000 333,300 139,380 -0- 273,000 546,000 902,000...
Bonita 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 $902,000. The following data pertain to the construction period. Costs to date Estimated costs to complete Progress billings to date Cash collected to date 2020 $256,280 339,720 270,000 240,000 2021 $429,120 166,880 555,000 505,000 2022 $606,000...
Whispering 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 $599,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $905,000. The following data pertain to the construction period. 2020 2021 2022 Costs to date $257,570 $413,310 $609,000 Estimated costs to complete 341,430 185,690 –0– Progress billings to date 270,000 551,000 905,000 Cash collected to date...
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