Complete the schedule below to compute


On April 1, 2010, Dougherty Inc. entered into a cost-plus-fixed-fee contract to construct an electric generator for Altom Corporation. At the contract date, Dougherty estimated that it would take 2 years to complete the project at a cost of $2,300,000. The fixed fee stipulated in the contract is $517,500. Dougherty appropriately accounts for this contract under the percentage-of-completion method. During 2010 Dougherty incurred costs of $920,000 related to the project. The estimated cost at December 31, 2010, to complete the contract is $1,380,000. Dolan was billed $690,000 under the contract.

Complete the schedule below to compute the amount of gross profit to be recognized by Dougherty under the contract for the year ended December 31, 2010.

 

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Accounting Basics: Complete the schedule below to compute
Reference No:- TGS0705513

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