Thompson Construction began a construction project in 2018. The contract price was $1,250,000, and the estimated costs were $1,000,000. Data for each year of the contract are as follows 2018 2019 2020 $250,000 $600,000 $190,000 750,000 212,500 375,000 500,000 375,000 187,500 469,000 593,500 Costs incurred during the year Estimated costs to complete Partial billings Collections Required: Assuming Thompson satisfies its performance obligation over time, determine: 1. The balance of Construction in Progress at the end of 2018. 3. The gross profit for 2020. 0 2. The net amount for construction in progress inventory that should be reported on the 2019 balance sheet.
Thompson Construction began a construction project in 2018. The contract price was $1,250,000, and the estimated costs were $1,000,000. Data for each year of the contract are as follows 2018 2019 2020 $250,000 $600,000 $190,000 750,000 212,500 375,000 500,000 375,000 187,500 469,000 593,500 Costs incurred during the year Estimated costs to complete Partial billings Collections Required: Assuming Thompson satisfies its performance obligation over time, determine: 1. The balance of Construction in Progress at the end of 2018. 3. The gross profit for 2020. 0 2. The net amount for construction in progress inventory that should be reported on the 2019 balance sheet.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Thompson Construction began a construction project in 2018. The contract price was $1,250,000, and the estimated costs were
$1,000,000. Data for each year of the contract are as follows
2018
$250,000
750,000 212,500
375,000 500,000
375,000
187,500 469,000 593,500
2019
$600,000 $190,000
2020
Costs incurred during the year
Estimated costs to complete
Partial billings
Collections
Required:
Assuming Thompson satisfies its performance obligation over time, determine:
1. The balance of Construction in Progress at the end of 2018.
3. The gross profit for 2020.
0
2. The net amount for construction in progress inventory that should be reported on the 2019 balance sheet.
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