flow/c r 5 Homework Probl... X roll Add, or Drop Classes hapter 5 Homework Probi

Question

flow/c r 5 Homework Probl... X roll Add, or Drop Classes hapter 5 Homework Probiems 2 ?, June 15, 2016, sanderson construction erteed ino a longterm constructoncortadtobulid a basetat taannwichingon, D.C. for $260 miltion. The expecteo completon dute s Apri1 2020, just in tme for the 2020 baseball season. Costs incumec and estlmated costs to compiete at year-end for the le of the contract are as folows (sin mltions 2018 2019 2020 60 $80 $65 140 60- Conts incurred during the year December 31 Requlred 1 Compute the revenue and goss prom a@ Saroson report rts 20?20s, and 2020 ioane statements rested to cond assuming Sanderson recogntzes revenue over time accoraing to perc 2 Compure the revenue and gross promt wll Sanderson report in its 20n8. 2019, and 2020 income statements reliated to nis concac assuring prolect ooes not-ury nor revenue recognt on over me. 3. Suppose the estimated cocts to complete at the end of 2019 are smo miaision instesd of $60 millon. compute the amount or revenue and gross prot or loss to be recognized in 2019 using the percentage of completion metod of completion Compia ahe eevenut and gress prars wa Sandenon report in ts 2013, 2019, and 2020 name statements reales to ma ecognizes revenue over Lime acconding to percentage of camplietion. (Eneer yer anwore in

Explanation / Answer

Percentage completion method 2018 2019 2020 Cost incurred in till previous year 0 60 140 ADD Cost incurred during the year 60 80 65 Total cost incurred till date 60 140 205 ADD Estimated cost to be incurred 140 60 0 Total estimated cost to be incurred 200 200 205 Percentage of completion (A) 30% 70% 100% (cost incurred till date /total estimated cost ) Total revenue (B) 260 260 260 Total revenue recognized (A *B) 78 182 260 Less Revenue recognized in previous year 0 78 182 revenue recognized in current year 78 104 78 2018 2019 2020 Revenue 78 104 78 Less Cost incurred 60 80 65 Gross profit 18 24 13

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.