percetage of completion method (over time) using cost to cost method:1. compute the due from to customers Vl - Methods of Construction Accounting-Unprofitable Contract (Estimated Gross Loss)NeCombs Contractors received a contract to construct a mental health facility for P2,500,.000.Construction was begun in 20x4 and completed in 20x5. Cost and other data are presentedbelow: 20x420x5P1,300,000.Cost incurred during the yearEstimated costs to completeBillings during the yearCash collections during the year.P1,500,0001,200,0001,200,0001,000,C001,300,0001,500,000Required:1. Prepare the journal entries, under:a. Percentage of completion (over time) method using cost-to-cost methodb. Cost recovery method (also known as zero-profit approach) or point in time2. Compute the due from/to customers:a. Percentage of completion (over time) method using cost-to-cost methodb. Cost recovery method (also known as zero-profit approach) or point in time3. Compute the gross profit (loss)a. Percentage of completion (over time) method using cost-to-cost methodb. Cost recovery method (also known as zero-profit approach) or point in timeIY - Inc omplete Data:

Since the student has specifically asked for computing the due from/to customers under the…

VIII - Methods of Construction Accounting-Unprofitable Contract (Estimated Gross Loss) NeCombs Contractors received a contract to construct a mental health facility for P2,500,000. Msiuction was begun in 20x4 and completed in 20x5. Cost and other data are presented below:

VIII - Methods of Construction Accounting-Unprofitable Contract (Estimated Gross Loss) NeCombs Contractors received a contract to construct a mental health facility for P2,500,000. Msiuction was begun in 20x4 and completed in 20x5. Cost and other data are presented below:

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

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

percetage of completion method (over time) using cost to cost method:

1. compute the due from to customers

Vl - Methods of Construction Accounting-Unprofitable Contract (Estimated Gross Loss)
NeCombs Contractors received a contract to construct a mental health facility for P2,500,.000.
Construction was begun in 20x4 and completed in 20x5. Cost and other data are presented
below:

20x4
20x5
P1,300,000.
Cost incurred during the year
Estimated costs to complete
Billings during the year
Cash collections during the year.
P1,500,000
1,200,000
1,200,000
1,000,C00
1,300,000
1,500,000
Required:
1. Prepare the journal entries, under:
a. Percentage of completion (over time) method using cost-to-cost method
b. Cost recovery method (also known as zero-profit approach) or point in time
2. Compute the due from/to customers:
a. Percentage of completion (over time) method using cost-to-cost method
b. Cost recovery method (also known as zero-profit approach) or point in time
3. Compute the gross profit (loss)
a. Percentage of completion (over time) method using cost-to-cost method
b. Cost recovery method (also known as zero-profit approach) or point in time
IY - Inc omplete Data:

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