Task: Logan, Inc. began work in 2004 on a contract for $6,300,000.
2004 2005
Costs incurred to date 2,700,000 4,200,000
Estimated costs to complete 1,800,000 -
Billing to date 2,100,000 6,300,0000
Collection to date 1,500,000 5,400,000
a) What the gross profit to be recognized in 2004 using the percentage-of-completion method?
b) What the gross profit to be recognized in 2005 using the completed-contract method?