On February 1, 2010, Marsh Contractors agreed to construct abuilding at a contract price...

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Accounting

On February 1, 2010, Marsh Contractors agreed to construct abuilding at a contract price of $5,800,000. Marsh estimated totalconstruction costs would be $4,000,000 and the project would befinished in 2012. Information relating to the costs and billingsfor this contract is as follows: 2014 2015 2016 Total costsincurred to date $1,500,000 $2,640,000 $4,600,000 Estimated coststo complete 2,500,000 1,760,000 -0- Customer billings to date2,200,000 4,000,000 5,600,000 Collections to date 2,000,0003,500,000 5,500,000
Instructions Fill in the correct amounts on the followingschedule.For percentage-of-completion accounting and forcompleted-contract accounting, show the gross profit that should berecorded for 2010, 2011, and 2012.
Percentage-of-Completion Revenue
2010:
2011:
2012:
Completed-Contract Revenue
2010:
2011:
2012:
Percentage-of-Completion Gross Profit
2010:
2011:
2012:
Completed-Contract Gross Profit
2010:
2011:
2012:
Calculate the Over/Under Billing for:
2010:
2011:
2012:

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Computation of % of completion, revenue recognition and Gross Profit - Marsh contractor
Year	Actual cost incurred (A)	Total cost incurred till date (B)	Total estimated Cost ( C )	% of completion (D) (B/C)	Contract Price (E)	*Total Revenue to be recoganized (F) (E D)**	Revenue for current period (G)	Gross Profit (H) (G - A)
2010	$1,500,000	$1,500,000	$4,000,000	37.50%	$5,800,000	$2,175,000	$2,175,000	$675,000
2011	$1,140,000	$2,640,000	$4,400,000	60.00%	$5,800,000	$3,480,000	$1,305,000	$165,000
2012	$1,960,000	$4,600,000	$4,600,000	100.00%	$5,800,000	$5,800,000	$2,320,000	$360,000

Computation of Gross Profit - Revenue on completion - Marsh contractor
Year	Actual cost incurred (A)	Total cost incurred till date (B)	Total estimated Cost ( C )	Contract Price (D)	Gross Profit
2010	$1,500,000	$1,500,000	$4,000,000	$5,800,000	$0
2011	$1,140,000	$2,640,000	$4,400,000	$5,800,000	$0
2012	$1,960,000	$4,600,000	$4,600,000	$5,800,000	$1200,000

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In: AccountingOn February 1, 2010, Marsh Contractors agreed to construct abuilding at a contract price of...On February 1, 2010, Marsh Contractors agreed to construct abuilding at a contract price of $5,800,000. Marsh estimated totalconstruction costs would be $4,000,000 and the project would befinished in 2012. Information relating to the costs and billingsfor this contract is as follows: 2014 2015 2016 Total costsincurred to date $1,500,000 $2,640,000 $4,600,000 Estimated coststo complete 2,500,000 1,760,000 -0- Customer billings to date2,200,000 4,000,000 5,600,000 Collections to date 2,000,0003,500,000 5,500,000Instructions Fill in the correct amounts on the followingschedule.For percentage-of-completion accounting and forcompleted-contract accounting, show the gross profit that should berecorded for 2010, 2011, and 2012.Percentage-of-Completion Revenue2010:2011:2012:Completed-Contract Revenue2010:2011:2012:Percentage-of-Completion Gross Profit2010:2011:2012:Completed-Contract Gross Profit2010:2011:2012:Calculate the Over/Under Billing for:2010:2011:2012: