What is the gross profit to be recognized on December

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Question - On Jan 2, 2020, JGG Builders Corp. of Dumaguete City enters into a contract to construct a building for P20M. During the construction period, many change orders are made to the original contact. All of the changes were accepted by both the customer and the contractor. The following schedule summarizes the change orders in 2020:

 

Cost incurred in 2020

Estimated Costs to Complete

Contract Price

Basic Contract

8,772,500

7,137,500

20,000,000

Change order # 1

50,000

50,000

140,000

Change order # 2

-

50,000

-

Change order # 3

300,000

300,000

600,000

Change order # 4

90,000

-

100,000

Required - Under the percentage-of-completion method, what is the gross profit to be recognized on December 31, 2020 (rounded to the nearest peso)?

Reference no: EM133060079

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