P800 d. b. No loss should be recognized. Use the following information for questions 36 to 39: AJD Builders is building a multi-unit residential complex. In the prior year, AJD Builders entered into a contract with a customer for a specific unit that is under construction. AJD Builders has determined that the contract is a single performance obligation satisfied over time AJD Builders gathered the following information for the contract during the year. AJD Builders -Year Ended December 31, 20x8 Costs to date.... P15,000,000 Future expected costs.. Work certified to date... Expected sales value.... Revenue taken in earlier periods*. Cost taken in earlier periods*. *same amount for both methods (output and input method) 10,000,000 18,000,000 32,000,000 P12,000,000 950,000 Colculote the figures to be included in the statement of profit or loss in respect of revenue and rosts for the year ended December 31, 20x8 on both methods (1) Input Method (Cost basis), and 1) Output Method (Sales Basis): 36. Calculate total expected profit for the year 20x8: P22,000,000 b. P17,000,000 a. С. P 7,000,000 d. P 4,000,000 7. Measure of progress towards completion (percentage of completion) Input/Cost Basis Output/Sales Basis 60.00% 56.25% 56.25% 60.00% Input/Cost Basis 45.45% 31.25% Output/Sales Basis 31.25% a. C. d. b. 45.45% 3. What amounts should be shown in the statement of profit or for revenue, cost of sales and Gross profit P 1,700,000 P 1,437,500 P 2,500,000 P 4,200,000 . What amounts should be shown in the statement of profit or for revenue, cost of sales and proft for the year using an output method (sales basis)? Cost of Sales P 5,500,000 P 4,562,500 P 9,500,000 Revenue P 7,200,000 b. P 6,000,000 a. С. P12,000,000 d. P19,200,000 P15,000,000 profit for the year using an input method (cost basis)? Revenue a. P 7,200,000 b. P 6,000,000 C. P12.000 000 Cost of Sales P 5,500,000 P 4,562,500 P 9 500 000 Gross profit P 1,700,000 P 1,437,500 P 2,500,000
P800 d. b. No loss should be recognized. Use the following information for questions 36 to 39: AJD Builders is building a multi-unit residential complex. In the prior year, AJD Builders entered into a contract with a customer for a specific unit that is under construction. AJD Builders has determined that the contract is a single performance obligation satisfied over time AJD Builders gathered the following information for the contract during the year. AJD Builders -Year Ended December 31, 20x8 Costs to date.... P15,000,000 Future expected costs.. Work certified to date... Expected sales value.... Revenue taken in earlier periods*. Cost taken in earlier periods*. *same amount for both methods (output and input method) 10,000,000 18,000,000 32,000,000 P12,000,000 950,000 Colculote the figures to be included in the statement of profit or loss in respect of revenue and rosts for the year ended December 31, 20x8 on both methods (1) Input Method (Cost basis), and 1) Output Method (Sales Basis): 36. Calculate total expected profit for the year 20x8: P22,000,000 b. P17,000,000 a. С. P 7,000,000 d. P 4,000,000 7. Measure of progress towards completion (percentage of completion) Input/Cost Basis Output/Sales Basis 60.00% 56.25% 56.25% 60.00% Input/Cost Basis 45.45% 31.25% Output/Sales Basis 31.25% a. C. d. b. 45.45% 3. What amounts should be shown in the statement of profit or for revenue, cost of sales and Gross profit P 1,700,000 P 1,437,500 P 2,500,000 P 4,200,000 . What amounts should be shown in the statement of profit or for revenue, cost of sales and proft for the year using an output method (sales basis)? Cost of Sales P 5,500,000 P 4,562,500 P 9,500,000 Revenue P 7,200,000 b. P 6,000,000 a. С. P12,000,000 d. P19,200,000 P15,000,000 profit for the year using an input method (cost basis)? Revenue a. P 7,200,000 b. P 6,000,000 C. P12.000 000 Cost of Sales P 5,500,000 P 4,562,500 P 9 500 000 Gross profit P 1,700,000 P 1,437,500 P 2,500,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Subject: AFAR
#39
Transcribed Image Text:Use the following information for questions 36 to 39:
39. What amounts should be shown in the statement of profit or for revenue, cost of sales and
into a contract with a customer for a specific unit that is under construction. AJD Builders has
AJD BUilders is building a multi-unit residential complex. In the prior year, AJD Builders entered
determined that the contract is a single performance obligation satisfied over fime AJD Builders
Revenue taken in earlier periods*......
profit for the year using an input method (cost basis)?
gathered the following information for the contract during the year.
a.
P800
P1,400
d.
No loss should be recognized.
b.
single performance obligation satisfied over time AJD Builders
AJD Builders -Year Ended December 31, 20x8
Costs to date.. .
Future expected costs......
Work certified to date....
Expected sales value...
P15,000,000
10,000,000
18,000,000
32,000,000
P12,000,000
Cost taken in earlier periods*.....
*same amount for both methods (output and input method)
950,000
Colculate the figures to be included in the statement of profit or loss in respect of revenue and
Costs for the year ended December 31, 20x8 on both methods (1) Input Method (Cost basis), and
) Output Method (Sales Basis):
36. Calculate total expected profit for the year 20x8:
P22,000,000
b. P17,000,000
P 7,000,000
P 4,000,000
a.
С.
d.
37. Measure of progress towards completion (percentage of completion)
Input/Cost Basis Output/Sales Basis
60.00%
b. 56.25%
Input/Cost Basis
45.45%
Output/Sales Basis
a.
56.25%
С.
31.25%
60.00%
d.
31.25%
45.45%
38. What amounts should be shown in the statement of profit or for revenue, cost of sales and
profif for the year using an output method (sales basis)?
Revenue
a. P 7,200,000
b. P 6,000,000
C. P12,000,000
d. P19,200,000
Cost of Sales
P 5,500,000
P 4,562,500
P 9,500,000
P15,000,000
Gross profit
P 1,700,000
P 1,437,500
P 2,500,000
P 4,200,000
the statement of profit or for revenue, cost of sales and
Revenue
a.
P 7,200,000
b.
P 6,000,000
C. P12,000,000
Cost of Sales
P 5,500,000
P 4,562,500
P 9,500,000
Gross profit
P 1,700,000
P 1,437,500
P 2,500,000
P 4,200,000
d. P19,200,000 P15,000,000
Advanced Fin
nrahensive: Conceptual & Procedural Approach
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