PAPASA Co. has consistently used the percentage of completion to account for its construction projects. On January 31, 2017, the company began work on a P4,500,000 construction contract. At the inception date, the estimated cost of the construction was P3,375,000. The following relates to the project Gross profit – 2017 450,000 Cost incurred to date – 2018 2,700,000 Estimated cost to complete – 2018 900,000 Progress billings 2018 3,500,000 How much is the Gross Profit/Loss Realized in 2018?
PAPASA Co. has consistently used the percentage of completion to account for its construction projects. On January 31, 2017, the company began work on a P4,500,000 construction contract. At the inception date, the estimated cost of the construction was P3,375,000. The following relates to the project Gross profit – 2017 450,000 Cost incurred to date – 2018 2,700,000 Estimated cost to complete – 2018 900,000 Progress billings 2018 3,500,000 How much is the Gross Profit/Loss Realized in 2018?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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PAPASA Co. has consistently used the percentage of completion to account for its construction projects. On January 31, 2017, the company began work on a P4,500,000 construction contract. At the inception date, the estimated cost of the construction was P3,375,000. The following relates to the project
|
Gross profit – 2017 |
450,000 |
|
Cost incurred to date – 2018 |
2,700,000 |
|
Estimated cost to complete – 2018 |
900,000 |
|
Progress billings 2018 |
3,500,000 |
How much is the Gross
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