ovided by the accountant and project manager concerning the construction costs for the three years of construction: Year 12/31/2041 12/31/2042 12/31/2043 Cumulative costs incurred as of the end of the year P1,000,000 ? P10,800,000 Realized gross profit/(loss) during the year ? P350,000 (P1,600,000)
On January 1, 2041, DMCI Inc. accepted a long-term construction project to construct a building with an initial 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. During 2043, the contract price increases due to the change in the project design. The following data are provided by the
Year 12/31/2041 12/31/2042 12/31/2043 Cumulative costs incurred as of the end of the year P1,000,000 ? P10,800,000
Realized gross
Percentage of completion as of the end of the year 12.5% 60% 90%
What is DMCI Inc.’s Cost of Construction Revenue to be recognized in its Income Statement for the year ended December 31, 2043?
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