On January 1, Year 1, a contractor agrees to build on the customer’s land a bridge that is expected to be completed at the end of Year 3. The bridge is a single performance obligation to be satisfied over time. The contractor determines that the progress toward completion of the bridge is reasonably measurable using the input method based on costs incurred. The contract price is $4,000,000, and initial expected total costs of the project are $2,400,000.

^ this is the question form the professor and I did the answers for year 1-2-3 :

Year 1
By the end of Year 1, 25% [$600,000 ÷ ($600,000 + $1,800,000)] of the total expected costs have been incurred. Using the input method based on costs incurred, the contractor recognizes 25% of the total expected revenue ($4,000,000 contract price × 25% ) = $1,000,000 and cost of goods sold $2,400,000.× 25%) = $600,000. The difference between these amounts is the gross profit for Year 1.

Revenue $1,000,000, Cost of goods sold $600,000 , Gross profit (1,000,000 – 600,000) =$400,000. The gross profit in Year 1 of $400,000 also may be calculated as total expected gross profit from the project of $1,600,000 ($4,000,000 - $2,400,000) times the progress toward completion of the contract of 25%.

Year 2
By the end of Year 2, total costs incurred are $1,800,000 ($600,000+ $1,200,000). Given that $1,200,000 is expected to be incurred in the future, the total expected cost is $3,000,000 ($1,800,000 + $1,200,000). The change in the total cost of the contract must be accounted for prospectively. By the end of Year 2, 60% ($1,800,000 ÷ $3,000,000) of expected costs have been incurred.
Thus, $2,400,000 ($4,000,000 × 60%) of cumulative revenue and $1,800,000 ($ 3,000,000 × 60%) of cumulative cost of goods sold should be recognized for Years 1 and 2.
Because $1,000,000 of revenue and $600,000 of cost of goods sold were recognized in Year 1, revenue of $1,400,000 ($2,400,000 cumulative revenue - $1,000,000) and cost of goods sold of $1,200,000 ($1,800,000 cumulative cost of goods sold - $600,000) are recognized in Year 2.
Revenue
$1,400,000
Cost of goods sold
1,200,000
Gross profit -- Year 2
$200,000*
* The gross profit in Year 2 of $200,000 also may be calculated as the cumulative gross profit for Years 1 and 2 of $600,000 [($4,000,000 - $3,000,000) × 60%] minus the gross profit recognized in Year 1 of $400,000.

Year 3
At the end of Year 3, the project is completed, and the total costs incurred for the contract are $2,900,000 ($600,000 + $1,200,000 + $1,100,000). Given $2,400,000 of cumulative revenue and $1,800,000 of cumulative cost of goods sold for Years 1 and 2, $1,600,000 ($4,000,000 contract price - $2,400,000) of revenue and $1,100,000 ($2,900,000 total costs - $1,800,000) of cost of goods sold are recognized in Year 3.

Revenue
$1,600,000
Cost of goods sold
1,100,000
Gross profit -- Year 3
$500,000
NOTE: (1) The total gross profit from the project of $550,000 ($400,000 + $200,000 + $500,000) equals the contract price of $4,000,000 minus the total costs incurred of $2,900,000. (2) When progress toward completion is measured using the cost-to-cost method, as in the example above, the cost of goods sold recognized for the period equals the costs incurred during that period.

NOW : I need the answer for this question:

An entity may not be able to estimate the degree of completion of a project at the end of the first year, perhaps because this is the first time such a project has been undertaken by the firm. In that case, how much revenue would the firm recognize in that year if significant costs have been incurred in the construction process?

Shown below is the trial balance for Dunbar Corporation as at June 30, 2017, the company's year end. The company owner provides you with the following additional information:

-No interest has been paid yet on the note payable. The note has been outstanding since April 1 and the interest rate is 12%

-The equipment originally cost $200,000 and has an estimated residual value of $10,000 and a useful life of 10 years.

- On June 1 the company renewed its insurance policy and paid a $1800 premium for the year. It was correctly recorded at that time as prepaid insurance.

-On October 1, 2016 the company sold a 12-month service contract to a client for $200,000 and recorded it as Unearned Revenue because at that point they had not yet provided any service to the client.

DUNBAR CORPORATION

TRIAL BALANCE

AS AT JUNE 30, 2017

Required

Prepare any adjusting entired required.

AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February:

The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $34 per job, and the actual mobile lab operating expenses for February were $9,500. The company expected to work 140 jobs in February, but actually worked 144 jobs.

Required:

Prepare a flexible budget performance report showing AirQual Test Corporation’s revenue and spending variances and activity variances for February. ( This report must include - jobs, revenue, expenses: technological wages, mobile lab operating expense, office expense, advertising expense, insurance, and miscellaneous expenses for both flexible and planning budget. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values

Provide an example of transaction that follows five-step revenue recognition principle. Please identify each revenue recognition steps.

Explain the relationship between Marketing efforts and actual Revenue dollars?  How does Marketing efforts drive Revenue?

1:

Marginal revenue product equals

2:

The long-run is a period of time

3:

Marginal cost equals

4:

The unique characteristic of a firm in perfectly competitive market equilibrium is

5:

The distinction between a firm and an industry does not exist in

6:

In a perfectly competitive market

-Obtain the regression equation. (Negative values should be indicated by a minus sign. Round your answers to 4 decimal places.)
  
Y = _______ X + ______

-Calculate R². (Round your answer to 4 decimal places.)
  
R² ______

-Calculate the degrees of freedom and t-critical for a two-tailed t test for zero slope at α = .05. (Round your answers to 2 decimal places.)
  

a. Explain how marginal revenue curves are derived from total revenue curves.

b. Explain why marginal revenue curves might slope downwards.

c. Explain why marginal revenue curves might be horizontal.

1) Calculate capital replacement and term debt repayment capacity for LongView Farms.

2) Calculate capital replacement and term debt repayment margin (CRDRM) for LongView Farms.

3) Solve the percent that crop revenue and livestock revenue can decline and still maintain positive CRDRM.

4) Solve the percent operating expenses and interest expenses can increase and still maintain positive CRDRM.