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On July 1, 20x1, Contractor Co. enters into a contract with a customer for the construction of a building. At contract inception, Contractor Co. assesses the contract in accordance with the principles of PFRS 15 and concludes that it has a single performance obligation that is satisfied over time. Contractor Co. then determines that the appropriate measure of its progress on the contract is input method based on costs incurred.
Information on the contract is shown below:
Contract price 600,000Contract costs incurred during 20x1 120,000Estimated remaining costs as of Dec. 31, 20x1 240,000Billings to the customer during 20x1 180,000Collections on billings during 20x1 60,000
Question 1: What amount of revenue is recognized on the contract in 20x1?
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