Problem 2 CONSTRUCTION COMPANY is executing a construction project, which is expected to take three years. P12,000,000. The company has signed a fixed price contract for The details of the costs incurred to date 2020 are as follows: Site labor costs Costs of construction material Depreciation of PPE used in construction Marketing and selling costs Total »EDIE 1,000,000 3,000,000 500,000 1,000,000 5,000,000 5,500,000 Total contract costs estimated to complete Determine the revenue, costs and profits to be recognized overtime in 2020. REVENUE 5,400,000 5,400,000 6,000,000 6,000,000 GROSS PROFIT/ (LOSS) 900,000 (100,000) 1,500,000 900,000 COSTS A. 4,500,000 5,500,000 4,500,000 5,500,000 в. c. D.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Problem 2
CONSTRUCTION COMPANY is executing a construction project, which is expected
to take three years.
P12,000,000.
The company has signed a fixed price contract for
The details of the costs incurred to date 2020 are as follows:
Site labor costs
1,000,000
3,000,000
500,000
1,000,000
5,000,000
5,500,000
Costs of construction material
Depreciation of PPE used in construction
Marketing and selling costs
EDIE
Total
Total contract costs estimated to complete
Determine the revenue, costs and profits to be recognized overtime in 2020.
GROSS
REVENUE
COSTS
PROFIT/ (LOSS)
5,400,000
5,400,000
6,000,000
6,000,000
A.
4,500,000
5,500,000
4,500,000
5,500,000
900,000
(100,000)
1,500,000
900,000
в.
c.
D.
Transcribed Image Text:Problem 2 CONSTRUCTION COMPANY is executing a construction project, which is expected to take three years. P12,000,000. The company has signed a fixed price contract for The details of the costs incurred to date 2020 are as follows: Site labor costs 1,000,000 3,000,000 500,000 1,000,000 5,000,000 5,500,000 Costs of construction material Depreciation of PPE used in construction Marketing and selling costs EDIE Total Total contract costs estimated to complete Determine the revenue, costs and profits to be recognized overtime in 2020. GROSS REVENUE COSTS PROFIT/ (LOSS) 5,400,000 5,400,000 6,000,000 6,000,000 A. 4,500,000 5,500,000 4,500,000 5,500,000 900,000 (100,000) 1,500,000 900,000 в. c. D.
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