Na Q1z Summary data for Benedict Construction Co.\'s (BCC) Job 1227, which was c

Question

Na Q1z Summary data for Benedict Construction Co.'s (BCC) Job 1227, which was completed in 2013, are presented below: Bid price Contract cost $450,000 2012 (10.000) 2013 (195.000) Gross profit 75,000 Estimated cost to complete: 12/31/2012 $200,000 12/31/2013 Assuming BCC uses the percentage-of-completion method of recognition the gross profit recognized in 2013 would be (rounded to the nearest thousand): A. $6,000. B. $39,000. C. $42,000. D. $45,000. Summary data for Benedict Construction Co.'s (BCC) Job 1227, which was completed in 2013, are presented below: $450,000 (180.000) (195.000) 75,000 Bid price Contract cost 2012 2013 Gross profit Estimated cost to complete 12 31 2012 $200.000 12 31 2013

Explanation / Answer

Q17 Answer:- C. $42000

= 180000/(180000+200000) = 47.37%

=(450000-18000-20000)×47.37%;= 33159 or 33000 rounded

= 450000 - (180000+195000) = $75000 - 33159 = 41841 or 42000 rounded off

Q18- No revenue is recogn ised until completion of project in year 2013

Q19. No revenues is recognised until completion of project in year 2013

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