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The amount of gross profit recognized in 2013 using the percentage of completion method must be: a. P800,000 b. P101,470 c. P365,000 d. P329,412

The amount of gross profit recognized in 2013 using the percentage of completion method must be: a. P800,000 b. P101,470 c. P365,000 d. P329,412

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The amount of gross profit recognized in 2013 using the percentage of completion method must be:

a. P800,000
b. P101,470
c. P365,000
d. P329,412

Andrew Corporation contracted to build a building for Errol Company. The contract price was P4,500,000 and Andrew estimated that construction costs would total P4,200,000. The construction period lasted until September 1, 2014. Costs during each period, estimated total cost of the product at the end of the year, billings and cash collected during the year were as follows: Costs during period Estimated or Actual Total Costs Billings during the period Cash collected during period 2012 P1,050,000 4,200,000 1,000,000 800,000 2013 P1,950,000 4,250,000 1,500,000 1,400,000 2014 P1,250,000 4,250,000 2,500,000 2,600,000
Transcribed Image Text:Andrew Corporation contracted to build a building for Errol Company. The contract price was P4,500,000 and Andrew estimated that construction costs would total P4,200,000. The construction period lasted until September 1, 2014. Costs during each period, estimated total cost of the product at the end of the year, billings and cash collected during the year were as follows: Costs during period Estimated or Actual Total Costs Billings during the period Cash collected during period 2012 P1,050,000 4,200,000 1,000,000 800,000 2013 P1,950,000 4,250,000 1,500,000 1,400,000 2014 P1,250,000 4,250,000 2,500,000 2,600,000
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