Boxer Corporation has consistently used thepercentage-of-completion method of recognizing income. In 2018,Boxer started work...Boxer...

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Accounting

Boxer Corporation has consistently used thepercentage-of-completion method of recognizing income. In 2018,Boxer started work on a $45,000,000 construction contract that wascompleted in 2019. The following information was taken from Boxer'saccounting records in 2018.
Progress billings $15,400,000
Costs incurred 14,700,000
Collections 9,600,000
Estimated costs to complete 21,400,000
What amount of gross profit should Boxer have recognized in 2018on this project?

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4.2 Ratings (534 Votes)

PARTICULARS AMOUNTin costs incurred till 2018 14700000 estimated costs to complete 21400000 total cost of construction 36100000 less contract price 45000000 gainloss 89000000 an See Answer

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In: AccountingBoxer Corporation has consistently used thepercentage-of-completion method of recognizing income. In 2018,Boxer started work...Boxer Corporation has consistently used thepercentage-of-completion method of recognizing income. In 2018,Boxer started work on a $45,000,000 construction contract that wascompleted in 2019. The following information was taken from Boxer'saccounting records in 2018.Progress billings $15,400,000Costs incurred 14,700,000Collections 9,600,000Estimated costs to complete 21,400,000What amount of gross profit should Boxer have recognized in 2018on this project?