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