Star Construction Corp. has a contract to construct a building for $10,876,000. The building is controlled by the customer throughout the term of the contract. Total costs to complete the building were originally estimated at $8,801,600. Construction commenced on 4 February 20X5. Actual costs were in line with estimated costs for 20X5 and 20X6. In 20X7, actual costs exceeded estimated costs by $138,400. Total construction costs incurred in each year were as follows: 20x5 20x6 20x7 $2,682,000 $4,470,000 $1,788,000 Billings (and cash collections) each year were as follows: 20x5 20X6 20x7 $2,284,500 $4,867,000 $3,724,500 Required: 1. Calculate the revenues and gross profit for the construction project for each of the three years assuming the company uses inputs to measure progress. (Round intermediate calculations to 2 decimal places. Round final answers to nearest whole dollars.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Star Construction Corp. has a contract to construct a building for $10,876,000. The building is controlled by the customer throughout
the term of the contract. Total costs to complete the building were originally estimated at $8,801,600. Construction commenced on 4
February 20X5. Actual costs were in line with estimated costs for 20X5 and 20X6. In 20X7, actual costs exceeded estimated costs by
$138,400.
Total construction costs incurred in each year were as follows:
20X5
20X6
20X7
Billings (and cash collections) each year were as follows:
20X5
20X6
20X7
$2,682,000
$4,470,000
$1,788,000
20X5
20X6
20X7
Total
$2,284,500
$4,867,000
$3,724,500
Required:
1. Calculate the revenues and gross profit for the construction project for each of the three years assuming the company uses inputs to
measure progress. (Round intermediate calculations to 2 decimal places. Round final answers to nearest whole dollars.)
Year
Revenue Gross Profit
$ 3,311,082 $ 629,082
5,048,536
578,536
3,206,464
1,418,464
$ 11,566,082 $2,626,082
Transcribed Image Text:Star Construction Corp. has a contract to construct a building for $10,876,000. The building is controlled by the customer throughout the term of the contract. Total costs to complete the building were originally estimated at $8,801,600. Construction commenced on 4 February 20X5. Actual costs were in line with estimated costs for 20X5 and 20X6. In 20X7, actual costs exceeded estimated costs by $138,400. Total construction costs incurred in each year were as follows: 20X5 20X6 20X7 Billings (and cash collections) each year were as follows: 20X5 20X6 20X7 $2,682,000 $4,470,000 $1,788,000 20X5 20X6 20X7 Total $2,284,500 $4,867,000 $3,724,500 Required: 1. Calculate the revenues and gross profit for the construction project for each of the three years assuming the company uses inputs to measure progress. (Round intermediate calculations to 2 decimal places. Round final answers to nearest whole dollars.) Year Revenue Gross Profit $ 3,311,082 $ 629,082 5,048,536 578,536 3,206,464 1,418,464 $ 11,566,082 $2,626,082
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