Group assignment week 3

Group assignment week 3 - [($1,950,000 X 60%) – $195,000]...

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(a) Computation of Recognizable Profit/Loss Percentage-of-Completion Method 2007 Costs to date (12/31/07) $150,000 Estimated costs to complete 1,350,000 Estimated total costs $1,500,000 Percent complete ($150,000 ÷ $1,500,000) 10% Revenue recognized ($1,950,000 X 10%) 195,000 Costs incurred 150,000 Profit recognized in 2007 $45,000 2008 Costs to date (12/31/08) 1,200,000 Estimated costs to complete 800,000 Estimated total costs 2,000,000 Contract price 1,950,000 Total loss 50,000 Total loss $50,000 Plus gross profit recognized in 2007 45,000 Loss recognized in 2008 ($95,000) or Percent complete ($1,200,000 ÷ $2,000,000) 60% Revenue recognized in 2008
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Unformatted text preview: [($1,950,000 X 60%) – $195,000] $975,000 Costs incurred in 2008 ($1,200,000 – $150,000) 1,050,000 loss to date 75,000 Loss attributable to 2009 20,000 Loss recognized in 2008 ($95,000) 2009 revenue ($1,950,000 – $195,000 – $975,000) $780,000 2009 estimated costs 800,000 2009 loss ($20,000) 2009 Costs to date (12/31/09) 2,100,000 Estimated costs to complete 2,100,000 Contract Price 1,950,000 Total loss $150,000 Total loss $150,000 Less: Loss recognized in 2008 95,000 Gross profit recognized in 2007-45,000 ($50,000) Loss recognized in 2009 ($100,000)...
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This note was uploaded on 04/04/2012 for the course ACC 422 taught by Professor Susan during the Spring '08 term at University of Phoenix.

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