Cost recovery method: Under the cost recovery method, gross profit is recognized when the cost of the sales is recovered. Where there is an extremely high degree of uncertainty in the installment sales, then this method can be used. Revenue recognized point of long term contract A long-term contract qualifies for revenue recognition over time. The seller can recognize the revenue as per percentage of the completion of the project, which is recognized by revenue minus cost of completion until date. If a contract does not meet the performance obligation norm, then the seller cannot recognize the revenue till the project is complete. To determine: The recognized revenue, cost and, gross profit under cost recovery method in first and second year (IFRS).
Cost recovery method: Under the cost recovery method, gross profit is recognized when the cost of the sales is recovered. Where there is an extremely high degree of uncertainty in the installment sales, then this method can be used. Revenue recognized point of long term contract A long-term contract qualifies for revenue recognition over time. The seller can recognize the revenue as per percentage of the completion of the project, which is recognized by revenue minus cost of completion until date. If a contract does not meet the performance obligation norm, then the seller cannot recognize the revenue till the project is complete. To determine: The recognized revenue, cost and, gross profit under cost recovery method in first and second year (IFRS).
Solution Summary: The author explains the cost recovery method, where gross profit is recognized when the costs of the sales are recovered. Revenue recognized point of long-term contract A contract does not meet the performance obligation norm.
Under the cost recovery method, gross profit is recognized when the cost of the sales is recovered. Where there is an extremely high degree of uncertainty in the installment sales, then this method can be used.
Revenue recognized point of long term contract
A long-term contract qualifies for revenue recognition over time. The seller can recognize the revenue as per percentage of the completion of the project, which is recognized by revenue minus cost of completion until date.
If a contract does not meet the performance obligation norm, then the seller cannot recognize the revenue till the project is complete.
To determine: The recognized revenue, cost and, gross profit under cost recovery method in first and second year (IFRS).
Chapter 15 Homework i
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QS 15-8 (Algo) Computing predetermined overhead rates LO P3
A company estimates the following manufacturing costs at the beginning of the period: direct labor,
$520,000; direct materials, $216,000; and factory overhead, $141,000.
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1. Compute its predetermined overhead rate as a percent of direct labor.
2. Compute its predetermined overhead rate as a percent of direct materials.
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Compute its predetermined overhead rate as a percent of direct labor.
Overhead Rate
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Overhead Rate
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Overhead Rate
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hello teacher please solve questions general accounting
Campbell Soup Company reported pension expense of $94 million and contributed $81.5 million to the pension fund.
Prepare Campbell's journal entry to record pension expense and funding, assuming campbell has no OCI amounts.