Exercise 18-34 (Algorithmic) (LO. 5) Shumpert, Inc., entered into a contract that was to take two years to complete, with an estimated cost of $2,008,000. The contract price was $2,811,200. Costs of the contract for 2022, the first year, totaled $1,506,000. If required, round any division to two decimal places and round your final answers to the nearest dollar. a. What was the gross profit reported by the percentage of completion method for 2022? b. After the contract was completed at the end of 2023 at a total cost of $2,108,400, what was the gross profit reported by the percentage of completion method for 2023?

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Exercise 18-34 (Algorithmic) (LO. 5)
Shumpert, Inc., entered into a contract that was to take two years to complete, with an estimated cost of $2,008,000. The contract price
was $2,811,200. Costs of the contract for 2022, the first year, totaled $1,506,000.
If required, round any division to two decimal places and round your final answers to the nearest dollar.
a. What was the gross profit reported by the percentage of completion method for 2022?
b. After the contract was completed at the end of 2023 at a total cost of $2,108,400, what was the gross profit reported by the
percentage of completion method for 2023?
Transcribed Image Text:Exercise 18-34 (Algorithmic) (LO. 5) Shumpert, Inc., entered into a contract that was to take two years to complete, with an estimated cost of $2,008,000. The contract price was $2,811,200. Costs of the contract for 2022, the first year, totaled $1,506,000. If required, round any division to two decimal places and round your final answers to the nearest dollar. a. What was the gross profit reported by the percentage of completion method for 2022? b. After the contract was completed at the end of 2023 at a total cost of $2,108,400, what was the gross profit reported by the percentage of completion method for 2023?
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