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. Thecontract price was P25,000,000. Dawn Co. uses the percentageantract price was P25,000,000, Dawn Co. uses the percentageof completion method, based on costs, in recognizing revenuefrom the contract. The estimated total contract costs were.P22,000,000. Dawn Co. incurred the following costs:20x120x2Costs incurred to date3,960,00018,400,000In 20x2, the customer changed the specification of the windowglasses to tempered glass and agreed to pay an additional 5% ofthe original contract price. The incremental cost was estimated tobe P1,000,000. The performance obligation in the contract remainsa single performance obligation. How much are the revenue andgross profit recognized in 20x2, respectively?a. 12,060,000; 2,068,000c. 16,800,000; 2,068,000d. 16,500,000; 2,060,000b. 14,268,000; 2,060,000

Under percentage completion method, the revenue and gross profit are recognized on the basis of…

Answered: 14. Dawn Co. was contracted to build a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Please help me by showing your solution in good accounting form. Thank you! MOC Construction Company started work on three job sites during the current year. Any costs incurred are expected to be recoverable. Data relating to the three jobs are given below: Site Contract Price Cost Incurred Estimated Costs to Complete Billings on Contract Collections on Billings 1 5 000 000 3 750 000 - 5 000 000 5 000 000 2 7 000 000 1 000 000 4 000 000 900 000 900 000 3 2 500 000 1 000 000 1 000 000 1 500 000 1 000 000 If the company records revenue over time, how much must be shown as a current asset in the balance sheet of MOC Construction Company as of December 31?A. 5,500,000 C. 250,000B. 500,000 D. 100,000 If the company records revenue at a point in time, how much must be shown as a current asset in the balance sheet of MOC Construction Company as of December 31?A. 5,100,000 C. 250,000B. 500,000 D. 100,000
What amount of RGP should be reported for the current year if the percentage of completion method is used for all contracts?
Jeffrey's Bottling Company incurred the following costs during November: Conversion costs $ __________ Prime costs 227,500 Manufacturing overhead 181,000 If direct materials cost was $144,500 in November, what was the conversion cost for November?
Bella Construction Co. uses the percentage-of-completion method. In 20x1, Bella began work on a contract for $2,477,005; it was completed in 20x2. The following cost data pertain to this contract: Year ended December 31, 20x1 Year ended December 31, 20x2 Costs incurred during the year $869,041 $559,369 Estimated costs to complete at the of year $494,825 - The amount of gross profit to be recognized on the income statement for the year ended December 31, 20x2 is: a. $553,770 b. $339,315 c. $1,048,595 d. $1,113,139
Your company has won a one-year contract that was planned to start on January 1, 2016 and be completed by December 31, 2016. The work that was to be performed by the engineering department was estimated at 1000 hours per month for the duration of the twelve-month project using pay grade 7 employees (i.e., regular engineers). The customer informs you that they wish to start the project on July 1 rather than January 1, and they assume that there is no financial impact on the total cost of the project. According to company policy, in 2016 the project account would be charged at a rate of $51 per hour for grade 7 employees, plus an overhead rate of 150%. Also, a salary increase will take effect on January 1, 2017, so the hourly rate will be $54 in 2017 for the grade 7 employees. Moreover, it is expected that the overhead rate will be increased to 155% in 2017. Is there a financial impact on the total cost of the project, and if so, how much of an impact? The escalation reserve should be…
During 2007, Frank Corp. started a construction job with a total contract price of $2,800,000. It was completed on December 15, 2008. Additional data are as follows: 2007 2008 Actual costs incurred in current year $1,080,000 $1,220,000 Estimated remaining costs 1,080,000 — Billed to customer 960,000 1,840,000 Received from customer 800,000 1,920,000 Under the completed-contract method, what amount should Frank recognize as gross profit for 2008? Group of answer choices 500,000 $250,000 $180,000 $380,000
Shumpert, Inc. entered into a contract that was to take two years to complete, with an estimated cost of $2,257,600. The contract price was $3,160,640. Costs of the contract for 2014, the first year, totaled $1,693,200. a. What was the gross profit reported by the percentage of completion method for 2014?
The company DEZ S.A. produces product D. For the attribution of the GBE, it uses as a cost guide the hours of direct work (OAE). For the fiscal year 2021, the estimated GBE amounts to 50,000 €, while it foresees to use 5,000 OEMs. During the fiscal year 2021, the total Direct Materials used by the company amounted to 130.000€, while the cost of Direct Labour amounted to 53.900€. Calculate the Total Cost of Production. If the actual GBE amounted to 52.000€, calculate the amount of the difference between actual and assigned GBE. Answer whether there is an under-counting or an over-allocation of GBE.
Hel Jordan Services Company has 68 employees, 26 of whom are assigned to Division A and 42 to Division B. Jordan incurred $413,440 of fringe benefits cost during year 2. Required Determine the amount of the fringe benefits cost to be allocated to Division A and to Division B. Allocated Cost Division A B
Nadeem BSC is a civil engineering company. It started work on to civil engineering projects during the year ended 31 December 2020. The nature of both contracts is that the customer controls the asset as the project goes forward. Work is certified by a surveyor as performance obligations are completed. The following figures relate to those projects at the end of the reporting period. Qadim Bypass Hidd Mall BD’000 BD’000 Contract Price 18,000 16,000 Costs incurred to date 2,800 5,800 Estimated costs to completion 11,200 10,400 Value of work certified to date 5,600 6,000 Progress billing 5,200 6,800 An old disused oil well has been discovered under the site for the Hidd Mall and the costs of dealing with this have been taken into account in the calculation of estimated costs to completion. Nadeem BSC’s lawyers are reasonably confident that the customer will have to bear the additional costs which will be incurred in stabilising…

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