During 2021, a company started a construction job with a contract price of $296,100. The job was completed in 2023. The following information is available. 202120222023Costs incurred to date$40,000$88,000$188,000Estimated costs to complete 210,000 112,000-0-Billings to date 40,000 110,000 170,000Collections to date 20,000 40,000 100,000 If the company uses the percentage-of-completion method, the gross profit to be recognized in 2022 (the second year of the construction) is $___________.

The percentage of completion method is a method where all the revenues generated and expenses…

Answered: During 2021, a company started a…

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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During 2021, a company started a construction job with a contract price of $296,100. The job was completed in 2023. The following information is available.

	2021	2022	2023
Costs incurred to date	$40,000	$88,000	$188,000
Estimated costs to complete	210,000	112,000	-0-
Billings to date	40,000	110,000	170,000
Collections to date	20,000	40,000	100,000

If the company uses the percentage-of-completion method, the gross profit to be recognized in 2022 (the second year of the construction) is $___________.

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