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Question - Percentage-of-Completion Method
In 2013, Tarlo Company agrees to construct a highway for Brice County over a 3-year period (2013 through 2015). The contract price is $945,000, and the construction costs (both actual and estimated) total $675,000 for the 3 years. The percentage completed at the end of each year is as follows: 2013, 20%; 2014, 75%; 2015, 100%.
Prepare a schedule showing the amount of gross profit that Tarlo recognizes each year using the percentage-of-completion method.
Prepare a schedule showing the amount of gross profit that Tarlo recognizes each year using the completed-contract method. If an amount is zero, enter "0".
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