Compute the estimated gross profit

Assignment Help Accounting Basics
Reference no: EM132622978

Question - BOSS Construction Company has entered into a contract beginning January 1, 2019, to build a parking complex. It has been estimated that the complex will cost $1,500,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $2,250,000. The following data pertain to the construction period.

 

2019

2020

2021

Costs to date

$675,000

$1,125,000

$1,525,000

Estimated costs to complete

825,000

375,000

0

Progress billings to date

675,000

1,375,000

2,250,000

Cash collected to date

600,000

1,250,000

2,250,000

Instructions -

a. Using the percentage-of-completion method, compute the estimated gross profit that would be recognized during each year of the construction period.

b. Using the cost-recovery method, compute the estimated gross profit that would be recognized during each year of the construction period.

Reference no: EM132622978

Questions Cloud

Characteristics that companies look for in managers : Compare and contrast the relative importance of the three characteristics that companies look for in managers
How achieve the required short and long-term goals : Develop a detailed action plan you could use to help you achieve the required short- and long-term goals.
Demonstrate for the total production cost and cost per unit : Heavy Company, Demonstrate for the total production cost and the cost per unit of product if the company is able to produce 1,200 units.
Develop a work goals and plans report : Choose a company that one would be interested in working for, as well as a job role within that company. The role one choose should be at a managerial level
Compute the estimated gross profit : Using the cost-recovery method, compute the estimated gross profit that would be recognized during each year of the construction period
What kind of lien represents : How is the ability to place a lien on a person's property significant and why do you think the law allows for this? What kind of lien represents this and what d
Compute for product unit cost if unit are to be manufactured : Compute Product unit cost if 40,000 units are to be manufactured each year. Four units of product are produced each labor hour at a labor rate of P40 per hour.
What are the benefits of encouraging line managers : What are the benefits of encouraging line managers' participation and involvement when variations are proposed? Provide at least 10 examples.
What are the steps of developing a code of conduct : What are the steps of developing a code of conduct?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Tom cruise lines inc issued bonds five years ago at 1000

tom cruise lines inc. issued bonds five years ago at 1000 per bond. these bonds had a 25-year life when issued and the

  What amount should be reported as a current liability

By December 31, 2017, 16 of the 40 home games had been played. What amount should be reported as a current liability at December 31, 2017

  Calculate and compare the selling price of each product

Advanced Diploma of Accounting Assignment - International Institute of Technology, Australia. Calculate and compare the selling price of each product

  Prepare the adjusting entries that should be recorded

Wages earned by employees during December 2011, Prepare the adjusting entries that should be recorded for Dittman's Variety Store at December 31, 2011

  Prepare the journal entry to record the purchase

Prepare the journal entry to record the purchase Beaumont company recently purchased some real estate that contain land improvements

  What is the total carrying cost and the restocking cost

If the relevant carrying cost per electric part is $4 and the fixed order cost is $750, what is the total carrying cost and the restocking cost, respectively

  Determine the amount of underapplied or overapplied overhead

The Custom Guitar Company uses a predetermined overhead rate of $5 per machine hour to apply overhead. During the year, 32, 500 machine hours were worked.

  The invoices were approved for payment.

Purchase orders for supplies were placed in the amount of $ 60,000. The entire amount ordered was received during the year, together with invoices totaling $ 56,000 The invoices were approved for payment.

  What is the average issue price per share

Ten years ago, Vita Ltd. issued 472,000 shares, which are still outstanding, for a total value of $2,265,600. What is the average issue price per share

  What is the present yearly net operating income or loss

The company's present selling price is $99 per unit, and variable expenses are $69 per unit. What is the present yearly net operating income or loss

  What is a credit card fee

What is a credit card fee? How does it affect amounts reported on the income statement? What is a sales discount? Use 1/10, n/30 in your explanation.

  Reveal total overhead costs

A flexible budget for 15,000 hours revealed variable manufacturing overhead of $90,000 and fixed overhead of $120,000. The budget for 25,000 hours would reveal total overhead costs of:

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd