Oriole Corporation uses the percentage-of-completion method. At the end of the first year of a $9016000 contract, the following information is available: Costs to date: Estimated costs to complete Progress billings during the year Cash collected during the year $2014250 O $959000 O $719250 O $239750 O $269000 6042750 1814000 1545000 In the first year, Oriole should recognize gross profit of (Do not round intermediate calculations.)

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Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.