(a) Determine the transaction price for the contract, assuming Robinson is only able to estimate whether the building can be completed by August 1, 2026, or not (Robinson estimates that there is a 70% chance that the building will be completed by August 1, 2026). Transaction price $ (b) Determine the transaction price for the contract, assuming Robinson has limited information with which to develop a reliable estimate of completion by the August 1, 2026, deadline. Transaction price $

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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.