The KCO Builders Company enters into a contract on January 1, Year 1, to construct...
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The KCO Builders Company enters into a contract on January 1, Year 1, to construct a 20-storey building for P40,000,000. During the construction period, many change orders are made to the original contract. The following schedule summarizes these changes made in Year 1. Costs Incurred In Year 1 Estimated costs to complete Contract Price Basic contract P8,000,000 P28,000,000 P40,000,000 Change order # 1 50,000 50,000 125,000 Change order # 2 - 50,000 - Change order # 3 300,000 300,000 Still to be negotiated, at least cost Change order # 4 125,000 - 100,000 Using percentage of completion method, compute for recognized: (1) revenue, and (2) gross profit for the year ended December 31, Year 1: CPAR 0410 (1) P9,382,830; and (2) P907,830 (1) P9,257,485; and (2) P909,063 (1) P9,257,485; and (2) P907,830 (1) P9,382,830; and (2) P888,889
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