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Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,770,000. The project was begun in 2023 and completed in 2024. Cost and other data are presented below: Costs incurred during the year Estimated costs to complete 2023 $ 396,000 2024 $ 1,070,000 924,000 0 490,000 1,280,000 390,000 1,380,000 Billings during the year Cash collections during the year Assume that Beavis recognizes revenue upon completion of the project.

Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,770,000. The project was begun in 2023 and completed in 2024. Cost and other data are presented below: Costs incurred during the year Estimated costs to complete 2023 $ 396,000 2024 $ 1,070,000 924,000 0 490,000 1,280,000 390,000 1,380,000 Billings during the year Cash collections during the year Assume that Beavis recognizes revenue upon completion of the project.

FINANCIAL ACCOUNTING
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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Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,770,000. The project was begun in 2023 and completed in 2024. Cost and other data are presented below: 2023 2024 Costs incurred during the year Estimated costs to complete Billings during the year Cash collections during the year $ 396,000 $ 1,070,000 924,000 490,000 390,000 0 1,280,000 1,380,000 Assume that Beavis recognizes revenue upon completion of the project. Required: Compute the amount of gross profit recognized during 2023 and 2024. Note: Leave no cells blank - be certain to enter "O" wherever required. Gross Profit 2023 2024
Transcribed Image Text:Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,770,000. The project was begun in 2023 and completed in 2024. Cost and other data are presented below: 2023 2024 Costs incurred during the year Estimated costs to complete Billings during the year Cash collections during the year $ 396,000 $ 1,070,000 924,000 490,000 390,000 0 1,280,000 1,380,000 Assume that Beavis recognizes revenue upon completion of the project. Required: Compute the amount of gross profit recognized during 2023 and 2024. Note: Leave no cells blank - be certain to enter "O" wherever required. Gross Profit 2023 2024
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