r Corp. for the contract are $2,240,000. The equipment is highly specialized and has no alte ted in the contract, any costs incurred by Supplier Corp. plus a specified profit margin will b vent of a contract cancellation. Actual costs incurred during the first year of the contract we cted cost overruns of $128,000 due to labor inefficiencies. e that at the end of the second year of the contract, the estimate of total costs has increases an increase in cost of materials. Actual costs incurred to date are $1,800,000, excluding year late (1) recognized revenue, (2) the gross profit, and (3) adjusted contract margin to be reco ontract. gnized revenue $ s profit $ sted contract margin $ 0 0 0
r Corp. for the contract are $2,240,000. The equipment is highly specialized and has no alte ted in the contract, any costs incurred by Supplier Corp. plus a specified profit margin will b vent of a contract cancellation. Actual costs incurred during the first year of the contract we cted cost overruns of $128,000 due to labor inefficiencies. e that at the end of the second year of the contract, the estimate of total costs has increases an increase in cost of materials. Actual costs incurred to date are $1,800,000, excluding year late (1) recognized revenue, (2) the gross profit, and (3) adjusted contract margin to be reco ontract. gnized revenue $ s profit $ sted contract margin $ 0 0 0
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 19RE
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