Question
In: Accounting
Q6. Contract price: $9.5 million; Year 6 Year 7 Year 8 Costs fo
Q6. Contract price: $9.5 million;
Year 6 Year 7 Year 8
Costs for the year $3,825,000 $4,675,000 $1,300,000
Estimated cost to complete $4,675,000 $1,270,000
Progress billing during the year $3,500,000 $4,100,000 $1,900,000
Cash collected during the year $3,100,000 $4,150,000 $2,100,000
(1) Using the percentage-of-completion method, determine the balance of construction in progress (CIP) at the end of year Year 7. [9 marks]
(2) Using the completed-contract method, determine the balance of construction in progress (CIP) at the end of year Year 7. [9 marks]
Solutions
ekkarill92 answered 2 years agoRelated Solutions
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the construction activity for the year-end 31 December 2020, are
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project
contract price
costs incurred to 31/12/2020
estimated costs to complete
billing to 31/12/2020
cash collections to 31/12/2020
AB
$2,000,000
$600,000
$1,400,000
$450,000
$410,000
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the construction activity for the year-end 31 December 2020, are as follows: project contract price costs...
the construction activity for the year-end 31 December 2020, are
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project
contract price
costs incurred to 31/12/2020
estimated costs to complete
billing to 31/12/2020
cash collections to 31/12/2020
AA
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$400,000
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$300,000
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gross profit (loss) of the project before deducting selling,
general, and administrative expenses for the year ended 31 December
2020 using the percentage-of-completion method.(based on estimated
costs.)
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