MINA CONSTRUCTION has used the cost-to-cost percentage of completion method to recognize revenue. Recently, their office was struck by fire. In trying to reconstruct all records of the company, the accountant was able to find the following information regarding a recently completed building project for which the total contract was P4,000,000. 2020 2021 2022 Gross profit (loss) each year 80,000 280,000 (40,000) Cost incurred each year 720,000 ? 1,640,000 MINA, the owner of the company, would like to find out the answers to the following questions in relation to the above data: 1. How much cost was incurred in 2021? A. 3,680,000 B. 1,640,000 C. 2,360,000 D. 1,320,000 2. What was the percentage of completion by the end of 2021? A. 90% B. 40% C. 51% D. 60% 3. What was the estimated cost to complete the project at the end of 2021? A. 3,400,000 B. 1,320,000 C. 2,040,000 D. 1,360,000
MINA CONSTRUCTION has used the cost-to-cost percentage of completion method to recognize revenue. Recently, their office was struck by fire. In trying to reconstruct all records of the company, the accountant was able to find the following information regarding a recently completed building project for which the total contract was P4,000,000.
|
|
2020 |
2021 |
2022 |
|
Gross |
80,000 |
280,000 |
(40,000) |
|
Cost incurred each year |
720,000 |
? |
1,640,000 |
MINA, the owner of the company, would like to find out the answers to the following questions in relation to the above data:
1. How much cost was incurred in 2021?
A. 3,680,000
B. 1,640,000
C. 2,360,000
D. 1,320,000
2. What was the percentage of completion by the end of 2021?
A. 90%
B. 40%
C. 51%
D. 60%
3. What was the estimated cost to complete the project at the end of 2021?
A. 3,400,000
B. 1,320,000
C. 2,040,000
D. 1,360,000
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