What percentage of the project was completed by the end

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Question - Lucio Construction Co. has used the cost-to-cost percentage-of-completion method of recognizing revenue, Johnny Sins assumed the presidency of the company after the death of his father, Junjun. In reviewing the records, Johnny finds the following information regarding a recently completed building project for which the total contract was P2,000,000.

 

2019

2020

2021

Gross profit (loss)

P40,000

P140,000

P(20,000)

Cost incurred each year

360,000

?

820,000

Johnny 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:

1. How much cost was incurred in 2020?

2. What percentage of the project was completed by the end of 2020?

3. What was the total estimated gross profit on the project by the end of 2020?

4. What was the estimated cost of complete the project at the end of 2020?

Reference no: EM133055852

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