On March 2020, George Construction Company entered into a fixed price contract to construct a commercial building for P30,000,000. George appropriately accounts this contract under the percentage- of-completion method. Information relating to the contract is as follows: 2020 20% 2021 60% Percentage-of-completion Estimated costs at completion P22,500,000 P24,000,000 Income recognized-cumulative 1,500,000 3,600,000 What is the amount of contract costs incurred during the year ended December 31, 2021?

On March 2020, George Construction Company entered into a fixed price contract to construct a commercial building for P30,000,000. George appropriately accounts this contract under the percentage- of-completion method. Information relating to the contract is as follows: 2020 20% 2021 60% Percentage-of-completion Estimated costs at completion P22,500,000 P24,000,000 Income recognized-cumulative 1,500,000 3,600,000 What is the amount of contract costs incurred during the year ended December 31, 2021?

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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