In 2013, Tarlo Company agrees to construct a highway for Brice County over a 3-year period (2013 through 2015). The contract price is $1,350,000, and the construction costs (both actual and estimated) total $690,000 for the 3 years. The percentage completed at the end of each year is as follows: 2013, 25%; 2014, 70%; 2015, 100%.
1) Prepare a schedule showing the amount of gross profit that Tarlo recognizes each year using the percentage-of-completion method.
Gross Profit: Percentage of Completion Method:
2013 $165,000
2014 Need Answer
2015 Need Answer
Total Gross Profit Need Answer