Homework Answers
Solution:
| Computation of % of completion, revenue recognition and Gross Profit - Marsh contractor | ||||||||
| 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) (G - A) |
| 2012 | $1,500,000 | $1,500,000 | $4,000,000 | 37.50% | $5,400,000 | $2,025,000 | $2,025,000 | $525,000 |
| 2013 | $1,140,000 | $2,640,000 | $4,400,000 | 60.00% | $5,400,000 | $3,240,000 | $1,215,000 | $75,000 |
| 2014 | $1,960,000 | $4,600,000 | $4,600,000 | 100.00% | $5,400,000 | $5,400,000 | $2,160,000 | $200,000 |
| Computation of Gross Profit - Revenue on completion - Marsh contractor | |||||
| Year | Actual cost incurred (A) | Total cost incurred till date (B) | Total estimated Cost ( C ) |
Contract Price (D) |
Gross Profit |
| 2012 | $1,500,000 | $1,500,000 | $4,000,000 | $5,400,000 | $0 |
| 2013 | $1,140,000 | $2,640,000 | $4,400,000 | $5,400,000 | $0 |
| 2014 | $1,960,000 | $4,600,000 | $4,600,000 | $5,400,000 | $800,000 |
Add Answer to:
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