On January 1, 2011, DMCI Inc. started the construction of a building with a fixed contract price of P10,000,000. The outcome of the construction project can be estimated reliably, and the contractor decided to employ cost to cost method. The following data are provided by the accountant and project manager concerning the construction costs for the three years of construction: rear Costs incurred during the year? Realized gross profit/(loss) during the year 12/31/2011 12/31/2012 12/31/2013 ? P1,500,000 P3,740,000 P750,000 (P250,000) (P800,000) Percentage of completion as of the end of the year 37.5% 50% 80% What is the balance of Construction in Progress on DMCI Inc.'s Statement of Financial Position on December 31,2013?

On January 1, 2011, DMCI Inc. started the construction of a building with a fixed contract price of P10,000,000. The outcome of the construction project can be estimated reliably, and the contractor decided to employ cost to cost method. The following data are provided by the accountant and project manager concerning the construction costs for the three years of construction: rear Costs incurred during the year? Realized gross profit/(loss) during the year 12/31/2011 12/31/2012 12/31/2013 ? P1,500,000 P3,740,000 P750,000 (P250,000) (P800,000) Percentage of completion as of the end of the year 37.5% 50% 80% What is the balance of Construction in Progress on DMCI Inc.'s Statement of Financial Position on December 31,2013?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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