In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows: 2021 2022 2023 Cost incurred during the year $2,581,000 $2,347,000 $3,049,200 Estimated costs to complete as of year-end 6,319,000 2,772,000 0 Billings during the year
In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows:
2021 2022 2023
Cost incurred during the year $2,581,000 $2,347,000 $3,049,200
Estimated costs to complete as of year-end 6,319,000 2,772,000 0
Billings during the year 2,090,000 2,838,000 5,072,000
Cash collections during the year 1,845,000 2,900,000 5,255,000
Westgate recognizes revenue over time according to percentage of completion.
4.Calculate the amount of revenue and gross
2021 2022 2023
Cost incurred during the year $2,581,000 $3,845,000 $3,245,000
Estimated costs to complete as of year-end 6,319,000 3,145,000 0
2021 2022 2023
Revenue ______________ ______________ _______________
Gross profit (loss) ______________ ______________ _______________
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