Percentage-of-completion method of accounting

Assignment Help Financial Accounting

Reference no: EM13794912

Monroe Construction Company uses the percentage-of-completion method of accounting. In 2015, Monroe began work on a contract it had received, which provided for a contract price of $15,000,000. Other details are as follows: cost incurred during 2015 is $7,200,000; estimated cost to complete at December 31, 2015 is $4,800,000; billings during the year for 2015 amount to $6,600,000; and collections during 2015 amount to $3,900,000. What should be the gross profit recognized in 2015?

A $600,000

B $7,800,000

C $1,800,000

D $3,000,000

Reference no: EM13794912

Questions Cloud

Identify the relationship between human resources : Identify the relationship between human resources and labor management relations and safety outcomes. Consider how efficient production and safe production are related.

Merchandise inventory account : Sam’s Club is a merchandising entity; on October 1st, they purchased goods from a company for $22,000 with terms of freight on board (FOB) shipping point, 3/10, n/EOM, Sam’s Club paid 30% of the amount due on October 5th, another 30% on October 9th, ..

Problem based on natural and human sources : Have the programs, best management practices, or regulations been effective in resolving harm from the pollutant?

Used of transfer pricing method : Alibaba ecommerce company, We assumed that no used of Transfer Pricing method please explain at least 2 or 3 paragraph.

Percentage-of-completion method of accounting : Monroe Construction Company uses the percentage-of-completion method of accounting. In 2015, Monroe began work on a contract it had received, which provided for a contract price of $15,000,000. Other details are as follows: cost incurred during 2015 ..

Recorded using the straight-line method : A machine was purchased for $180,000 and it was estimated to have an $12,000 salvage value at the end of its useful life. Monthly depreciation expense of $1,400 was recorded using the straight-line method. The annual depreciation rate is

Find the cost of goods sold and value of ending inventory : During March, Capsule Corp. reported a beginning inventory of a popular capsule of 1,200 units, all at $30/unit. The company uses a perpetual inventory system and the LIFO inventory costing method. These transactions occurred during the month: Find t..

Evaluate the use of committees within the organization : In what ways do committees occasionally serve to counterbalance authority and diffuse power within an organization. Evaluate the use of committees within the organization, identifying the most optimum use in your opinion. Defend your position.

Find the inventory turnover and gross profit : Find the Gross Profit Percentage of Wayne Enterprises for FY 2012. Find the Inventory Turnover for Luthor Industries for FY 2012. Find the Days Sales in Inventory for Luthor Industries for FY 2012.

User Account

All Pages