During 2025, Cullumber Company started a construction job with a contract price of $1,620,000. The job was completed in 2027. The following information is available. Costs incurred to date Estimated costs to complete Billings to date Collections to date (a) 2025 $393,900 $889,380 Gross profit recognized in 2026 616,100 Gross profit recognized in 2027 303,000 273,000 Gross profit recognized in 2025 $ 2026 $ $ 208,620 902,000 814,000 2027 Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. $1,061,000 -0- 1,620,000 1,418,000

During 2025, Cullumber Company started a construction job with a contract price of $1,620,000. The job was completed in 2027. The following information is available. Costs incurred to date Estimated costs to complete Billings to date Collections to date (a) 2025 $393,900 $889,380 Gross profit recognized in 2026 616,100 Gross profit recognized in 2027 303,000 273,000 Gross profit recognized in 2025 $ 2026 $ $ 208,620 902,000 814,000 2027 Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. $1,061,000 -0- 1,620,000 1,418,000

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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A price company from time to time embarks on a research program when a special project seems to offer possibilities in 2019 the company expands $325,000 on a research project, but by the end of 2019, it is possible to determine whether any benefits will be driven from it. What account should be charged from 325,000 and how should be shown in the financial statement? Additional engineering and consulting costs incurred in 2021 are required to advance the design of the project in the manufacturing stage. Total $60,000. These costs enhance the design of the product considerably. Discuss the proper account treatment for this cost.
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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Zoczi b egan work on a $420,000 construction contract in 2017. During 2017 Zorzi incurred costs of $278,000, billed its customer for $215.000, ancd collected $175,000. At December 31, 2017, the estimated additional costs to complete the project total $162,000, Prepare Zorzi's Journal entry to record profit or loss utilizing the percentage of Completion Method O Construction Expense Revenue from Long Term Contracts O Construction Expemse Construction in Process Revenue from Long Term Contracts O Construction Expense Construction im Process Revenue from Long Term Contracts O Construction Expense Construction in Process Revenue from Long Term Contracts $285 356 $285,356 $285 356 $20 000 $265 356 $420 000 $20 000 $400.000 $400 000 $20.000 $420 000
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On March 1, 2012, Chance Company entered into a contract to build an apartment building. It is estimated that the building will cost $2,000,000 and will take 3 years to complete. The contract price was $3,000,000. The following information pertains to the construction period. Compute the amount of gross profit to be recognized on year 2014, assuming the percentage-of-completion method is used.
John Brown Inc.'s accounting records reflect the following inventories: Dec 31.2019 Dec 31, 2020 $80,000 $ 64,000 Raw materials inventory 104,000 116.000 Work in process inventory 92,000 100,000 Finished goods inventory During 2020, John Brown purchased $1,450,000 of raw materials, incurred direct labor costs of $250,000, and incurred manufacturing overhead totaling $160,000. How much is total manufacturing costs incurred during 2020 for John Brown? a $1,864.000 b. $1,876,000 c. $1,860,000 d. $1,872,000
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Super Speedy Delivery Services has the collected the following information about operating expenditures for its delivery truck fleet for the past five years: Year Miles Operating Costs 2016 55,000 $195,000 2017 70,000 $210,000 2018 50,000 $180,000 2019 65,000 $205,000 2020 85,000 $225,150 Using the high-low method, what is the cost estimate for fixed costs for 2021? Select one: Ο A. $109,650 O B. $115,500 0 C. $100,000 о D. $ 70,000
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