Discussion:
Percentage-of-Completion Method:
Dalton Construction Co. contracted to build a bridge for $10,000,000. Construction began in 2012 and was completed in 2013. Data relating to the construction are:
Costs incurred......................2012 - $3,300,000.....2011..............$2,750
Estimated costs to complete.....2012 - $2,700,000
A. How much revenue should be reported for 2012? Show your computations
B. Make the entry to record progress billings of $3,300,000 during 2012
C. Make the entry to record the revenue and gross profit for 2012
D. How much gross profit should be reported for 2013? Show your computations.