What percentage of the project was completed by the end

Assignment Help Accounting Basics

Reference no: EM132755938

Problem - Kris Construction Co. has used the cost-to-cost percentage-of-completion method of recognizing revenue, Kris assumed the presidency of the company after the death of his father, Ninoy. In reviewing the records, Kris ?nds the following information regarding a recently completed building project for which the total contract was P2,000,000.

	2014	2015	2016
Gross pro?t (loss)	P40,000	P140,000	P(20,000)
Cost incurred each year	360,000	?	820,000

Kris wants to know how effectively the company operated during the three (3) years on this project and, since the information is not complete, has asked for answers to the following questions:

Required -

1. How much cost was incurred in 2015?

2. What percentage of the project was completed by the end of 2015?

3. What was the total estimated gross pro?t on the project by the end of 2015?

4. What was the estimated cost of complete the project at the end of 2015?

Reference no: EM132755938

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