Question - McCombs Contractors received a contract to construct a building for a price of $ 700,000, and the company determined that its performance obligation was satisfied over time. Other information relating to the contract is as follows:
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2017
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2018
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Costs incurred during the year
|
150,000
|
242,000
|
|
Estimated costs to complete
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350,000
|
168,000
|
|
Billings during the year
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120,000
|
250,000
|
|
Cash collections during the year
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100,000
|
260,000
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Required: Compute the amount of gross profit recognized during 2017 and 2018.