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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?

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
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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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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