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Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,800,000. The project was begun in 2012 and completed in 2013. Cost and other data are presented below: Cost incurred during the year 2012 - $450,000 Cost incurred during the year 2013 - $1,100,000 Estimated cost to comple 2012 - $1,050,000 Estimated cost to comple 2013 - $0 Billing during the year 2012 - $400,000 Billing during the year 2013 - $1,400,000 Cash collected during the year 2012 - $300,000 Cash collected during the year 2013 - $1,500,000 Assume that Beavis uses the completed contract method for revenue recognition.
Required: Compute the amount of gross profit recognized during 2012 and 2013
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