Compute the estimated gross profit

Assignment Help Financial Accounting

Reference no: EM131755911

Question:

P18-2 Shanahan Construction Company has entered into a contract beginning January 1, 2014, to build a parking complex. It has been estimated that the complex will cost $600,000 and will take 3 years to construct.

The complex will be billed to the purchasing company at $900,000. The following data pertain to the construction period.

	2014	2015	2016
Costs to date	$270,000	$450,000	$610,000
Estimated costs to complete	$330,000	$150,000	-0-
Progress billings to date	$270,000	$550,000	$900,000
Cash collected to date	$240,000	$500,000	$900,000

Instructions

Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period.

Using the completed-contract method, compute the estimated gross profit that would be recognized during each year of the construction period

Reference no: EM131755911

Questions Cloud

Discuss a contribution margin income statement : If Stanley prepares a contribution margin income statement for the month of June, what would be his operating income

Discussion of how interview content relate to course concept : discussion of how the interview content relates to course concepts, and a final section with some concluding thoughts about the interview experience.

Calculate madtacks cost of goods sold after the overhead : Calculate Madtack's cost of goods sold after the overhead variance is closed for March.

Examine the information systems for is company : The company that we are going to examine the information systems for is company, Nation Funeral Home. He uses MIMS Elite for making arrangements.

Compute the estimated gross profit : Compute the estimated gross profit that would be recognized during each year of the construction period - during each year of the construction period

Major activities involved in process management : Define process management and list the major activities involved in process management.

How do organizations measure workforce effectiveness : Why is it important to assess workforce engagement and satisfaction? How do organizations measure workforce effectiveness?

Legislation and compensation : Review the attached power point entitled "Legislation and Compensation".

Discuss the world atmosphere as international public good : Discuss the world’s atmosphere as an “international” public good.

User Account

All Pages