What is the amount of contract costs incurred

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Problem - On April 1, 2019, Pine Construction Company entered into a fixed-price contract to construct an apartment building for $6,000,000. Pine will satisfy the performance obligations in the contract over time and appropriately accounts for this contract. Information relating to the contract is as follows:

 

At December 31, 2019

At December 31, 2020

Percentage of completion

20%

60%

Estimated costs at completion

$4,500,000

$4,800,000

Gross profit recognized (cumulative)

$300,000

$720,000

Required - What is the amount of contract costs incurred during the year ended December 31, 2020?

Reference no: EM132889964

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