Statement showing computation of Gross Profit recognizze over time assuming percebtage of completion method | |||||
Percentages of completion | |||||
Choose numerator | ÷ | Choose denominator | = | % complete to date | |
Actual costs to date | Estimated total costs | ||||
2021 | $70 | ÷ | $200 | = | 35.00% |
(70+130) | |||||
2022 | $130 | ÷ | $160 | = | 81.25% |
(70+60) | (70+60+30) | ||||
2023 | 160 | 160 | 100.00% | ||
(70+60+30) | |||||
2021 | |||||
To date (A) | Recognized in prior years (B) | Recognized in 2018 (A-B) | |||
Construction revenue | $108.5 | $0 | $108.5 | ||
(310X35%) | |||||
Less: Construction expense | $70 | $0 | $70 | ||
Gross profit (loss) | $38.5 | $0 | $38.5 | ||
2022 | |||||
To date (A) | Recognized in prior years (B) | Recognized in 2019 (A-B) | |||
Construction revenue | $251.87 | $108.5 | $143.37 | ||
(310*81.25%) | Prevoius Year | ||||
Less: Construction expense | $130 | $70 | $60 | ||
(70+60) | Prevoius Year | ||||
Gross profit (loss) | $121.87 | $38.5 | $83.37 | ||
2023 | |||||
To date (A) | Recognized in prior years (B) | Recognized in 2020 (A-B) | |||
Construction revenue | $310 | $143.37 | $166.63 | ||
Contract Value | |||||
Less: Construction expense | $160 | $130 | $30 | ||
(70+60+30) | Prevoius Year) | ||||
Gross profit (loss) | $150 | $13.37 | $136.63 | ||
2. Statement showing revenue and gross profit assuming this project does not qualify for revenue recognition over time. ( $ in Million) | ||
Year | Revenue recognized | Gross Profit (Loss) recognized |
2021 | $0 | $0 |
2022 | $0 | $0 |
2023 | $310 | $150 |
(310-160) |
Part-3 : Computation of Revenue and gross profit or loss to be recognized in 2022 (using the percentage of completion ) | |||||
Percentages of completion | |||||
Choose numerator | ÷ | Choose denominator | = | % complete to date | |
Actual costs to date | Estimated total costs | ||||
2022 | $130 | ÷ | $250 | = | 52.00% |
(70+60) | (70+60+120) | ||||
2022 | |||||
To date | Recognized in prior years | Recognized in 2019 | |||
Construction revenue | $161.2 | $108.5 | $52.7 | ||
(310*52%) | |||||
Less:Construction expense | $120 | $70 | $50 | ||
(70+60) | |||||
Gross profit (loss) | $41.2 | $38.5 | $2.7 |
*$ are in millions
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