Details of this Paper

On March 1, 2010, Pechstein Construction Company c...

Description

Solution


Question

On March 1, 2010, Pechstein Construction Company contracted to construct a factory building for Fabrik Manufacturing Inc. for a total contract price of $8,400,000. The building was completed by October 31, 2012. The annual contract costs incurred, estimated costs to complete the contract, and accumulated billings to Fabrik for 2010, 2011, and 2012 are given below. 2010 2011 2012 Contract costs incurred during the year $2,880,000 $2,230,000 $2,190,000 Estimated costs to complete the contract at 12/31 3,520,000 2,190,000 -0- Billings to Fabrik during the year 3,200,000 3,500,000 1,700,000 Using the percentage-of-completion method, complete the schedules below to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2010, 2011, and 2012. (Ignore income taxes.) (For negative numbers use either a negative sign preceding the number, e.g. -45 or parenthesis, e.g. (45).) 2010 Costs to date (12/31/10) $ Estimated costs to complete Estimated total costs $ Percent complete % Revenue recognized $ Costs incurred Profit recognized in 2010 $ 2011 Costs to date (12/31/11) $ Estimated costs to complete Estimated total costs $ Percent complete % Revenue recognized in 2011 $ Costs incurred in 2011 Loss recognized in 2011 $ 2012 Total revenue recognized $ Total costs incurred Total profit on contract Deduct profit previously recognized Profit recognized in 2012 $ Using the completed-contract method, complete the schedule below to compute the profit or loss to be recognized as a result of this contract for the years ended December 2010, 2011, and 2012. (Ignore incomes taxes.) (If answer is zero please enter 0, do not leave any fields blank.) 2010 $ 2011 $ 2012 $

 

Paper#11054 | Written in 18-Jul-2015

Price : $25
SiteLock