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Problem - Dillon Aerospace Company contracted to build a plane for $8,000,000. Construction began in 2016 and was completed in 2017. Data related to construction are:
2016 2017
Costs incurred during the year $2,640,000 $2,200,000
Estimated costs to complete $2,160,000 0
1. Prepare entries to record revenue and gross profit for 2016 and 2017 using the percentage of completion method.
2. Prepare the appropriate entry to record revenue and gross profit in 2017 assuming the completed contract method is used.
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