14. Dawn Co. was contracted to build a house for a customer. The contract price was P25,000,000. Dawn Co. uses the percentage s completion method, based on costs, in recognizing revenue am the contract. The estimated total contract costs were. P22.000,000. Dawn Co. incurred the following costs: 20x1 20x2 Costs incurred to date 3,960,000 18,400,000 In 20x2, the customer changed the specification of the window
14. Dawn Co. was contracted to build a house for a customer. The contract price was P25,000,000. Dawn Co. uses the percentage s completion method, based on costs, in recognizing revenue am the contract. The estimated total contract costs were. P22.000,000. Dawn Co. incurred the following costs: 20x1 20x2 Costs incurred to date 3,960,000 18,400,000 In 20x2, the customer changed the specification of the window
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:P22,000,000. Dawn Co. incurred the following costs:
from the contract. The estimated total contract costs were.
14. Dawn Co. was contracted to build a house for a customer. The
contract price was P25,000,000. Dawn Co. uses the percentage
antract price was P25,000,000, Dawn Co. uses the percentage
of completion method, based on costs, in recognizing revenue
from the contract. The estimated total contract costs were.
P22,000,000. Dawn Co. incurred the following costs:
20x1
20x2
Costs incurred to date
3,960,000
18,400,000
In 20x2, the customer changed the specification of the window
glasses to tempered glass and agreed to pay an additional 5% of
the original contract price. The incremental cost was estimated to
be P1,000,000. The performance obligation in the contract remains
a single performance obligation. How much are the revenue and
gross profit recognized in 20x2, respectively?
a. 12,060,000; 2,068,000
c. 16,800,000; 2,068,000
d. 16,500,000; 2,060,000
b. 14,268,000; 2,060,000
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