uring 2023, Wildhorse Corporation started a construction job with a contract price of $3.08 million. Wildhorse ran into severe echnical difficulties during construction but managed to complete the job in 2025. The contract is non-cancellable. Under the terms f the contract, Wildhorse sends billings as revenues are earned. Billings are non-refundable. The following information is available: 2023 2024 2025 Costs incurred to date $440,000 $1,540,000 $2,980,000 Estimated costs to complete 2,310,000 1,540,000 -0- a) Your answer is incorrect. Calculate the amount of gross profit that should be recognized each year under the percentage-of-completion method. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Gross profit/(loss) eTextbook and Media 2023 2024 0 2025 -1880000

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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.