National Construction agreed to construct a building for Berninger Corp with construction beginning on March 15, 2020. The project's contract price is $5,910,000, and National Construction estimates total construction costs would be $4,088,000. The project is scheduled to finish in 2022. Information relating to the costs and billings for this contract is as follows: 2020 2021 2022 Total costs incurred to date $1,533,000 $2,706,000 $4,655,000 Estimated costs to complete 2,555,000 1,804,000 -0- Customer billings to date 2,310,000 4,088,000 5,710,000 Collections to date 2,110,000 3,610,000 5,610,000 How much gross profit should be recorded for 2020, 2021, and 2022? Assuming National Construction uses the percentage-of-completion method of accounting for long-term contracts?
National Construction agreed to construct a building for Berninger Corp with construction beginning on March 15, 2020. The project's contract price is $5,910,000, and National Construction estimates total construction costs would be $4,088,000. The project is scheduled to finish in 2022. Information relating to the costs and billings for this contract is as follows:
|
|
2020 |
2021 |
2022 |
|
Total costs incurred to date |
$1,533,000 |
$2,706,000 |
$4,655,000 |
|
Estimated costs to complete |
2,555,000 |
1,804,000 |
-0- |
|
Customer billings to date |
2,310,000 |
4,088,000 |
5,710,000 |
|
Collections to date |
2,110,000 |
3,610,000 |
5,610,000 |
How much gross profit should be recorded for 2020, 2021, and 2022? Assuming National Construction uses the percentage-of-completion method of accounting for long-term contracts?
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