McCombs Contractors received a contract to construct a mental health facility for $1,800,000. Construction was begun in 2017 and completed in 2018. Cost and other data are presented below: 2017 2018 Costs incurred during the year $ 450,000 $1,100,000 Estimated costs to complete 1,050,000 0 Billings during the year 400,000 1,400,000 Cash collections during the year 300,000 1,500,000 Assume that McCombs recognizes revenue on this contract over time according to percentage of completion. Compute the percent completed for 2017 and 2018 Now compute the percent completed: 2017 2018 Costs to date/total estimated costs = Gross profit Total Gross Profit Previously recognized Gross profit recognized in current year
McCombs Contractors received a contract to construct a mental health facility for $1,800,000. Construction was begun in 2017 and completed in 2018. Cost and other data are presented below:
2017 2018
Costs incurred during the year $ 450,000 $1,100,000
Estimated costs to complete 1,050,000 0
Billings during the year 400,000 1,400,000
Cash collections during the year 300,000 1,500,000
Assume that McCombs recognizes revenue on this contract over time according to percentage of completion.
Compute the percent completed for 2017 and 2018
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Now compute the percent completed: |
2017 |
2018 |
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Costs to date/total estimated costs = |
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Gross profit |
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Total Gross Profit |
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Previously recognized |
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Gross profit recognized in current year |
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