ABC Construction uses the percentage-of-completion method for long-term construction contracts. A specific job was begun in 2003 and completed in 2005. The contract price was P14,000,000 and cost information as of each year –end is given below: 2003 2004 2005 End of year estimated cost to complete P4,000,000 P2,000,000 - Annual cost incurred 4,000,000 4,000,000 P1,200,000 Assuming ABC correctly recorded gross profit in 2003, how much gross profit should the company record in 2004? P -0- P3,000,000 P 200,000 P3,200,000 How much is the construction in progress account in 2004? 11,200,000 9,200,000 8,000,000 0 How much is the construction in progress account in 2004? 11,200,000 14,000,000 8,000,000 0
ABC Construction uses the percentage-of-completion method for long-term construction contracts. A specific job was begun in 2003 and completed in 2005. The contract price was P14,000,000 and cost information as of each year –end is given below:
2003 2004 2005
End of year estimated cost to complete P4,000,000 P2,000,000 -
Annual cost incurred 4,000,000 4,000,000 P1,200,000
Assuming ABC correctly recorded gross profit in 2003, how much gross profit should the
company record in 2004?
P -0-
P3,000,000
P 200,000
P3,200,000
How much is the construction in progress account in 2004?
11,200,000
9,200,000
8,000,000
0
How much is the construction in progress account in 2004?
11,200,000
14,000,000
8,000,000
0
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