ished in 2018. Information relating to the costs and billings for this contract is as follows: 2016 2018 costs incurred to date 750.000 $3,000,000 -0- ated costs to complete (not yet incurred) 1,250,000 ne the company uses the % of completion method to record revenue. Round to 2 decimal S. 2017 $1,320,000 1,500,000 ired: lculate the revenue to be recognized in 2016, 2017 and 2018. Show your calculations. pare a partial Income Statement for 2016, 2017 and 2018, calculating gross profit (loss). pare the year end journal entries in 2016 and 2017.

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Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.