Question - 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 2012 and completed in 2013. Cost and other data are presented below: Cost incurred during the year 2012 - $450,000Cost incurred during the year 2013 - $1,100,000Estimated cost to comple 2012 - $1,050,000Estimated cost to comple 2013 - $0Billing during the year 2012 - $400,000Billing during the year 2013 - $1,400,000Cash collected during the year 2012 - $300,000Cash collected during the year 2013 - $1,500,000 Assume that Beavis uses the percentage-of-completion method for revenue recognition.
Required: Compute the amount of gross profit recognized during 2012 and 2013.