Reference no: EM132690159
Buffalo Construction Company uses the percentage-of-completion method of accounting. In 2017, Buffalo began work under contract #E2-D2, which provided for a contract price of $2,227,000. Other details follow:
2017 2018
Costs incurred during the year $647,600 $1,405,000
Estimated costs to complete, as of December 31 971,400 -0-
Billings to date 415,000 2,227,000
Collections during the year 353,000 1,523,000
Problem 1: What portion of the total contract price would be recognized as revenue in 2017? In 2018?
Revenue recognized in 2017 $ 890,800
Revenue recognized in 2018 $1,336,200