Compute the estimated gross profit

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Question - Vaughn Construction Company has entered into a contract beginning January 1, 2020, to build a parking complex. It has been estimated that the complex will cost $606,000 and will take 3 years to construct. The complex will be billed to the purchasing company at $902,000. The following data pertain to the construction period.

 

2020

2021

2022

Costs to date

$272,700

$466,620

$618,000

Estimated costs to complete

333,300

139,380

-0-

Progress billings to date

273,000

546,000

902,000

Cash collected to date

243,000

496,000

902,000

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

Reference no: EM133088077

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