DM. Inc. worked on a P10,500,000 contract in 2016 to construct an office building. During 2016, DM. INc. uses the cost-to-cost method of computing percentage of completion. At December 31, 2016, the balance in certain accounts were as follows. How much is the realized gross profit in 2016? * • Construction in progress - P3,780,000 • Accounts receivable - P360,000 • Progress billings - P1.800,000 Contract retention - P180,000 Mobilization fee - P140,000 • At December 31, 2016, the estimated cost at completion is P7,350,000. O P1,102,500 O P1,062,500 O P1,242,500 O P1,134,000
DM. Inc. worked on a P10,500,000 contract in 2016 to construct an office building. During 2016, DM. INc. uses the cost-to-cost method of computing percentage of completion. At December 31, 2016, the balance in certain accounts were as follows. How much is the realized gross profit in 2016? * • Construction in progress - P3,780,000 • Accounts receivable - P360,000 • Progress billings - P1.800,000 Contract retention - P180,000 Mobilization fee - P140,000 • At December 31, 2016, the estimated cost at completion is P7,350,000. O P1,102,500 O P1,062,500 O P1,242,500 O P1,134,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:DM. Inc. worked on a P10,500,000 contract in 2016 to construct an office
building. During 2016, DM. INC. uses the cost-to-cost method of
computing percentage of completion. At December 31, 2016, the balance
in certain accounts were as follows. How much is the realized gross profit
in 2016? *
Construction in progress - P3,780,000
Accounts receivable - P360,000
Progress billings - P1,800,000
Contract retention – P180,000
Mobilization fee - P140,000
At December 31, 2016, the estimated cost at completion is P7,350,000.
P1,102,500
P1,062,500
O P1,242,500
O P1,134,000
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