In 20x1, XYZ Company enters into a construction contract with a customer. The contract price is P10,000,000. Information on the contract follows: 20X1 20X2 20X3 Contract costs incurred during the year P2,645,132 P236,451 P2,657,000 Estimated costs to complete 2,697,451 2,116,777 - Progress Billings 5,000,000 3,000,000 2,000,000 Collections on progress billings 2,000,000 4,000,000 4,000,000 Using the cost-to-cost method, Note: Use up to two (2) decimal places in presenting the answer for percentage of completion. Use six (6) decimal places when applying the percentage. 1. Percentage of completion for 20x1 _____________ 2. Revenue that should be recognized in 20x1 _____________ 3. Realized gross profit in 20x1 _____________ 4. Balance of "Contract Liability" at the end of 20x1 _____________
In 20x1, XYZ Company enters into a construction contract with a customer. The contract price is P10,000,000.
Information on the contract follows:
20X1 20X2 20X3
Contract costs incurred during the year P2,645,132 P236,451 P2,657,000
Estimated costs to complete 2,697,451 2,116,777 -
Progress Billings 5,000,000 3,000,000 2,000,000
Collections on progress billings 2,000,000 4,000,000 4,000,000
Using the cost-to-cost method,
Note: Use up to two (2) decimal places in presenting the answer for percentage of completion. Use six (6)
decimal places when applying the percentage.
1. Percentage of completion for 20x1 _____________
2. Revenue that should be recognized in 20x1 _____________
3. Realized gross profit in 20x1 _____________
4. Balance of "Contract Liability" at the end of 20x1 _____________
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
