On July 1, 2016, ABC Construction Corp. contracted to build an office building for XYZ, Inc. for a total price of P975,000. 2016 2017 2018 Contract cost incurred to date 75,000 600,000 1,050,000 Estimated costs to complete the contract 675,000 400,000 - Billings to XYZ, Inc. 150,000 550,000 275,000 1. Under the percentage of completion method, how much is the Construction-in-Progress at December 31,2017? 2. Under the zero-profit method, how much is the Construction-in-Progress, net of Progress Billings at December 31, 2017? 3. Under the percentage of completion method, how much is the realized gross profit/ (loss) at December 31, 2018?
On July 1, 2016, ABC Construction Corp. contracted to build an office building for XYZ, Inc. for
a total price of P975,000.
2016 2017 2018
Contract cost incurred to date 75,000 600,000 1,050,000
Estimated costs to complete the contract 675,000 400,000 -
Billings to XYZ, Inc. 150,000 550,000 275,000
1. Under the percentage of completion method, how much is the Construction-in-Progress
at December 31,2017?
2. Under the zero-profit method, how much is the Construction-in-Progress, net of Progress
Billings at December 31, 2017?
3. Under the percentage of completion method, how much is the realized gross
at December 31, 2018?
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