The Leto Construction Company began work on a $12.000 contract on 1/1/20. Planned completion was in 2022. The Percentage-of Completionmethod a usedGiven the followingDecember 312021$4.2006,3005,1006,00020202022$11,650$2,500Costs incumed to duteEsbinated costs to compieteBitingu to dateCollections to date7,6004.0003,80012,00011,900The 12/31/21 belance of Construction in Progress isSelect oneO. $4300Ob S5040O $5.000Od $4200O $4800

Construction in progress is equal to the contract value multiplied by the percentage of completion.…

The Leto Construction Company began work on a $12.000 contract on 1/1/20. Planned completion was in 2022. The Percentage-of Completion method is used Given the following December 31 2021 $4.200 6,300 6,100 6,000 2022 $11,600 Costs incured to de Estinated costs to complete ing to date Collections to date $2,500 7,600 4,000 3,800 12,000 11,900 The 12/31/21 balance of Construction in Progress is

The Leto Construction Company began work on a $12.000 contract on 1/1/20. Planned completion was in 2022. The Percentage-of Completion method is used Given the following December 31 2021 $4.200 6,300 6,100 6,000 2022 $11,600 Costs incured to de Estinated costs to complete ing to date Collections to date $2,500 7,600 4,000 3,800 12,000 11,900 The 12/31/21 balance of Construction in Progress is

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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Concept explainers

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.

Question

The Leto Construction Company began work on a $12.000 contract on 1/1/20. Planned completion was in 2022. The Percentage-of Completion
method a used
Given the following
December 31
2021
$4.200
6,300
5,100
6,000
2020
2022
$11,650
$2,500
Costs incumed to dute
Esbinated costs to compiete
Bitingu to date
Collections to date
7,600
4.000
3,800
12,000
11,900
The 12/31/21 belance of Construction in Progress is
Select one
O. $4300
Ob S5040
O $5.000
Od $4200
O $4800

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