Find or determine the revenue

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A contractor enters into a construction contract on January 1, 2019. The contractor agrees to a fixed price of P9,000 to build a building. The contractor's initial estimate of contract cost is P8,000. The contract expects that it will take three years to build the building.By the end of the first year of the contract (December 31, 2019), the contractor's estimate of total costs has increased to P8,050 (cost incurred in 2019 amounted to P2,093).In 2020 the customer and the contractor agreed to a variation resulting in an increase in contract revenue of P200 and estimated additional contract costs of P150. At the end of 2020, costs incurred of P4,075 include P100 paid for standard materials stored at the site to be used in 2021 to complete the project. The contractor determines the stage of completion of the contract by calculating the proportion that contract costs incurred for work performed to date to the latest estimated total contract costs.

Question 1: Determine the revenue for 2019.

Reference no: EM132594220

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