Chapter 18 Solution

Chapter 18 Solution - 135,000 Gross profit in 2008 $ 75,000...

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P18-2     2007 2008 2009   Contract price $900,000 $900,000 $900,000   Less estimated cost:               Costs to date   270,000   420,000   600,000         Estimated cost to complete   330,000   180,000 -         Estimated total cost   600,000   600,000   600,000             Estimated total gross profit $300,000 $300,000 $300,000 Gross Profit recognized in -    2007: $270,000 X $300,000 = $135,000      $600,000                       2008: $420,000 X $300,000 =   $210,000     $600,000                           Less 2007 recognized gross profit
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Unformatted text preview: 135,000 Gross profit in 2008 $ 75,000 2009: $600,000 X $300,000 = $300,000 $600,000 Less 2007 - 2008 recognized gross profit 210,000 Gross profit in 2009 $ 90,000 In 2007 and 2008, no gross profit would be recognized. Total billings $900,000 Total cost 600,000 Gross profit recognized in 2009 $ 300,000...
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