ABC Co. entered into a long term construction contract for 3 years. Contract price agreed was P7,500,000. The following data were ascertained for the contract: Cost incurred for the year Estimated cost at completion 4,700,000 6,250,000 5,275,000 2020 5,300,000 P1,900,000 The outcome of the contract can be estimated reliably. What is the construction cost for the year 2021? 5,700,000 2021 P5,300,000 800,000 2022 P49,500 ?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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ABC Co. entered into a long term construction contract for 3 years. Contract price
agreed was P7,500,000. The following data were ascertained for the contract:
Cost incurred for the year
Estimated cost at completion
4,700,000
O6,250,000
5,275,000
2020
5,300,000
P1,900,000
The outcome of the contract can be estimated reliably.
What is the construction cost for the year 2021?
5,700,000
2021
P5,300,000
800,000
2022
P49,500
?
Transcribed Image Text:ABC Co. entered into a long term construction contract for 3 years. Contract price agreed was P7,500,000. The following data were ascertained for the contract: Cost incurred for the year Estimated cost at completion 4,700,000 O6,250,000 5,275,000 2020 5,300,000 P1,900,000 The outcome of the contract can be estimated reliably. What is the construction cost for the year 2021? 5,700,000 2021 P5,300,000 800,000 2022 P49,500 ?
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