Calculate the amount of revenue and gross profit

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Question - In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows:

 

2021

2022

2023

Cost incurred during the year

$2,016,000

$2,808,000

$2,613,600

Estimated costs to complete as of year-end

5,184,000

2,376,000

0

Billings during the year

2,180,000

2,644,000

5,176,000

Cash collections during the year

1,890,000

2,500,000

5,610,000

Westgate recognizes revenue over time according to percentage of completion.

Required - Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.

Reference no: EM132999602

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