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Page Manufacturing Company uses the percentage-of-completion method of recognizi

ID: 2377521 • Letter: P

Question

Page Manufacturing Company uses the percentage-of-completion method of recognizing income on its long-term projects. During 2006, Page agreed to make a specialized production system for $1,000,000. Information relating to the contract is as follows: December 31, 2006: Percentage of completion: 20%, Estimated total costs at completion: $750,000, Income recognized (cumulative): $50,000. December 31, 2007: Percentage of completion: 60%, Estimated total costs at completion: $800,000, Income recognized (cumulative): $120,000. Contract costs incurred during 2007 were Answer $320,000. $330,000. $350,000. $480,000. Page Manufacturing Company uses the percentage-of-completion method of recognizing income on its long-term projects. During 2006, Page agreed to make a specialized production system for $1,000,000. Information relating to the contract is as follows: December 31, 2006: Percentage of completion: 20%, Estimated total costs at completion: $750,000, Income recognized (cumulative): $50,000. December 31, 2007: Percentage of completion: 60%, Estimated total costs at completion: $800,000, Income recognized (cumulative): $120,000. Contract costs incurred during 2007 were Page Manufacturing Company uses the percentage-of-completion method of recognizing income on its long-term projects. During 2006, Page agreed to make a specialized production system for $1,000,000. Information relating to the contract is as follows: December 31, 2006: Percentage of completion: 20%, Estimated total costs at completion: $750,000, Income recognized (cumulative): $50,000. December 31, 2007: Percentage of completion: 60%, Estimated total costs at completion: $800,000, Income recognized (cumulative): $120,000. Contract costs incurred during 2007 were $320,000. $330,000. $350,000. $480,000. $320,000. $330,000. $350,000. $480,000.

Explanation / Answer

$320,000. $330,000. $350,000. $480,000.