Current Attempt in ProgressDuring 2023, Sunland Corporation started a construction job with a contract price of $3.50 million. Sunland ran into severe technicaldifficulties during construction but managed to complete the job in 2025. The contract is non-cancellable. Under the terms of thecontract, Sunland sends billings as revenues are earned. Billings are non-refundable. The following information is available:(a)202320242025Costs incurred to date$500,000 $1,750,000$3,400,000Estimated costs to complete2,625,0001,750,000-0-- Your answer is partially correct.Calculate the amount of gross profit that should be recognized each year under the percentage-of-completion method. (Enternegative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)Gross profit/(loss)$20232024-100,000.00$2025$100000द

Using the percentage of completion method, the revenue and profits are recognized on the basis of…

Current Attempt in Progress During 2023, Sunland Corporation started a construction job with a contract price of $3.50 million. Sunland ran into severe technical difficulties during construction but managed to complete the job in 2025. The contract is non-cancellable. Under the terms of the contract, Sunland sends billings as revenues are earned. Billings are non-refundable. The following information is available: 2023 2024 2025 Costs incurred to date $500,000 $1,750,000 $3,400,000 Estimated costs to complete 2,625,000 1,750,000 -0- (a) Your answer is partially correct. Calculate the amount of gross profit that should be recognized each year under the percentage-of-completion method. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses eg. (45).) 2023 100.000.00 2024 2025 100000

Current Attempt in Progress During 2023, Sunland Corporation started a construction job with a contract price of $3.50 million. Sunland ran into severe technical difficulties during construction but managed to complete the job in 2025. The contract is non-cancellable. Under the terms of the contract, Sunland sends billings as revenues are earned. Billings are non-refundable. The following information is available: 2023 2024 2025 Costs incurred to date $500,000 $1,750,000 $3,400,000 Estimated costs to complete 2,625,000 1,750,000 -0- (a) Your answer is partially correct. Calculate the amount of gross profit that should be recognized each year under the percentage-of-completion method. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses eg. (45).) 2023 100.000.00 2024 2025 100000

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter16: Accounting Periods And Methods

Section: Chapter Questions

Problem 40P

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Concept explainers

Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.

Question

Current Attempt in Progress
During 2023, Sunland Corporation started a construction job with a contract price of $3.50 million. Sunland ran into severe technical
difficulties during construction but managed to complete the job in 2025. The contract is non-cancellable. Under the terms of the
contract, Sunland sends billings as revenues are earned. Billings are non-refundable. The following information is available:
(a)
2023
2024
2025
Costs incurred to date
$500,000 $1,750,000
$3,400,000
Estimated costs to complete
2,625,000
1,750,000
-0-
- Your answer is partially correct.
Calculate the amount of gross profit that should be recognized each year under the percentage-of-completion method. (Enter
negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Gross profit/(loss)
$
2023
2024
-100,000.00
$
2025
$
100000
द

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During 2023, Grouper Corporation started a construction job with a contract price of $4.34 million. Grouper ran into severe technical difficulties during construction but managed to complete the job in 2025. The contract is non-cancellable. Under the terms of the contract, Grouper sends billings as revenues are earned. Billings are non-refundable. The following information is available: Costs incurred to date Estimated costs to complete 2023 2024 $620,000 $2,170,000 3,255,000 2,170,000 2025 $4,240,000 -0- Assume billings for the construction contract were as follows: 2023, $520,000: 2024, $2,050,000; and 2025, $1,770,000.
Alpesh bhaliya
please help with calculation
1. During 2020, Bay Construction started a new construction job with a contract price of $750 million. Bay has a 12/31 fiscal year end. Bay has determined that the contract does not qualify for revenue recognition over time. The contract was completed on 12/31/22 with the following information ($ in millions): Costs incurred in the period (paid in cash) Estimated costs to complete at 12/31 Billings on contract in the period Cash collected in the period 2020 180.0 2021 2022 432.0 150.0 540.0 153.0 -0- 150 350 250 200 400 150 What is the amount of gross profit (loss) on the contract that Bay would recognize on the Income Statement in 2020, 2021 and 2022? You must show supporting work (calculations/explanations) to receive credit for your answers. Gross Profit (Loss) 2020 2021 2022
please please answer correctly with all working and steps so that I can understand clearly thanks need correct answer million thanks
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