This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: are a % of selling price. Advertising is $200 total (not per freezer). The $320 installa-tion costs are only on the freezers sold and do not relate to the ones remaining on consignment. 18-1 PROBLEM 18-7 Problem 18-7 is a good one to work on contract losses, but it is only available in the text, not WileyPLUS. I have copied it below so you can use it to answer the four ques-tions I posted for you: (Long-Term Contract with an Overall Loss) On July 1, 2010, Torvill Construction Company Inc. contracted to build an office building for Gumbel Corp. for a total con-tract price of $1,900,000. On July 1, Torvill estimated that it would take between 2 and 3 years to complete the building. On December 31, 2012, the building was deemed substantially completed. Following are accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to Gumbel for 2010, 2011, and 2012. 18-2...
View Full Document