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Question - Cost-to-Cost Method - Cyber Construction Company uses the cost-to-cost method to record revenues and gross profit for all of its projects. Cyber began a three-year project on January 1, 2019. Costs for the project expect to total $2,100,000. Cyber will receive a total of $3,600,000 in revenue for this project.
Data for the project appears below:
2019
2020
2021
Costs to date
$840,000
$1,365,000
$2,100,000
Estimated remaining costs
1,260,000
735,000
-
Progress Billings during the year
1,400,000
1,000,000
1,200,000
Cash collected during the year
1,050,000
940,000
1,610,000
Required - Calculate Cyber's revenue and gross profit for each of the three years.
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