Answer is $1,800,000.Please explain the reasoning and calculations 2. At December 31, 2017, Carter would report gross amount of Construction in Process asa. $600,000.b. $1,200,000.c. $1,800,000.d. $3,600,000. Ramos, Inc. began work in 2017 on contract #3814. The contract price is $7,200,000. Thecontract is expected to be completed in 2018. Other details follow:2017$1,200,0003,600,0001,350,000900,0002018Costs incurred during the yearEstimated costs to complete, as of December 31Billings during theCollections during the$3,675,000year5,400,0005,850,000yearAssume that Ramos uses the percentage-of-completion method of accounting and has fiscalyears ending on December 31.

One of the methods of construction contracts cost and revenue recognition is the percentage of…

Answered: 2. At December 31, 2017, Carter would…

2. At December 31, 2017, Carter would report gross amount of Construction in Process as a. $600,000. b. $1,200,000. c. $1,800,000. d. $3,600,000.

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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Question

Answer is $1,800,000. Please explain the reasoning and calculations

2. At December 31, 2017, Carter would report gross amount of Construction in Process as
a. $600,000.
b. $1,200,000.
c. $1,800,000.
d. $3,600,000.

Ramos, Inc. began work in 2017 on contract #3814. The contract price is $7,200,000. The
contract is expected to be completed in 2018. Other details follow:
2017
$1,200,000
3,600,000
1,350,000
900,000
2018
Costs incurred during the year
Estimated costs to complete, as of December 31
Billings during the
Collections during the
$3,675,000
year
5,400,000
5,850,000
year
Assume that Ramos uses the percentage-of-completion method of accounting and has fiscal
years ending on December 31.

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