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In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000

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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 $2,604,000 $2,604,000 $8,400,000 31.00% $10,000,000 $3,100,000 $3,100,000 $496,000
2019 $3,820,000 $6,424,000 $9,544,000 67.31% $10,000,000 $6,730,930 $3,630,930 -$189,070
2020 $3,220,000 $9,644,000 $9,644,000 100.00% $10,000,000 $10,000,000 $3,269,070 $49,070
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