Question
Beavis Construction Company was the low bidder on a construction project to build an earthen dam...
|
Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,800,000. The project was begun in 2015 and completed in 2016. Cost and other data are presented below: |
| 2012 | 2013 | ||
| Costs incurred during the year | $ 450,000 | $1,100,000 | |
| Estimated costs to complete | 1,050,000 | 0 | |
| Billings during the year | 400,000 | 1,400,000 | |
| Cash collections during the year | 300,000 | 1,500,000 | |
|
Assume that Beavis recognizes revenue on this contract over time according to percentage of completion. |
| Required: |
| Compute the amount of gross profit recognized during 2012 and 2013. |
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