Compute the amount of gross profit to be recognized

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Reference no: EM13130645

In 2011, 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 2013. Information related to the contract is as follows:

2011 2012 2013

Cost incurred during the year $ 2,400,000 $ 3,600,000 $ 2,200,000
Estimated costs to complete as of year-end 5,600,000 2,000,000 0
Billings during the year 2,000,000 4,000,000 4,000,000
Cash collections during the year 1,800,000 3,600,000 4,600,000

Westgate uses the completed contract method of accounting for long-term construction contracts.

Required:

(1) Calculate the amount of gross profit to be recognized in each of the three years. (Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)

2011 2012 2013
Gross profit $ $ $

Reference no: EM13130645

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