Solution-Determine the income from construction

Determine the income from construction

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Reference no: EM133016936

Question - Manny is in fourth year of business. Many performs long-term construction projects and accounts them using the percentage of completion method. Manny built an apartment building at a price of P500,000. The cost and billings for this contract for the first three years are as follows:

Particulars	2014	2015	2016
Cost incurred to date	P160,000	P300,000	P395,000
Estimated costs yet to be incurred	240,000	100,000	-0-
Customer billings to date	75,000	205,000	500,000
Collections of billings to date	60,000	170,000	475,000

Required - Determine the income from construction in 2016.

a. P35,000

b. P30,000

c. P40,000

d. P75,000

Reference no: EM133016936

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Determine the income from construction

Reference no: EM133016936

Reference no: EM133016936

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