Beavis Construction Company was the low bidder on a construction project to build an earthen...
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Accounting
Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,890,000. The project was begun in 2017 and completed in 2018. Cost and other data are presented below:
2017
2018
Costs incurred during the year
$
423,000
$
1,190,000
Estimated costs to complete
987,000
0
Billings during the year
445,000
1,445,000
Cash collections during the year
345,000
1,545,000
Assume that Beavis recognizes revenue on this contract over time according to percentage of completion. Required: Compute the amount of gross profit recognized during 2017 and 2018.
Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,890,000. The project was begun in 2017 and completed in 2018. Cost and other data are presented below:
2017
2018
Costs incurred during the year
$
423,000
$
1,190,000
Estimated costs to complete
987,000
0
Billings during the year
445,000
1,445,000
Cash collections during the year
345,000
1,545,000
Assume that Beavis recognizes revenue on this contract over time according to percentage of completion. Required: Compute the amount of gross profit recognized during 2017 and 2018.
Amount of gross profit recognized in 2017
Amount of gross profit recognized in 2018
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