Problem 4On March 1, 2022, AGGREGATES Company enters a contract to build a hotel whichis estimated tocostP31,200,000.The company recognizes constructionrevenue over time.Data on this project for 2022-2024 follow:ContractCostsEst'd CostsBillingsincurredto Complete20,540,000202210,500,00012,500,00014,440,0005,460,0009,984,00015,756,000202313,156,0002024The contract contains a penalty clause that penalizes the company a reductionof P70,000 from the contract price for every week of delay.contract was delayed for 8 weeksIn 2024, theWhat is the gross profit for 2024?1,164,0001,466,400A.C.1,724,000в.D.1,824,000PIS

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Problem 4 On March 1, 2022, AGGREGATES Company enters a contract to build a hotel which is estimated to cost P31,200,000. The company recognizes construction revenue over time. Data on this project for 2022-2024 follow: Est'd Costs Contract Costs incurred 5,460,000 9,984,000 15,756,000 Billings 10,500,000 to Complete 20,540,000 2022 2023 12,500,000 14,440,000 13,156,000 2024 The contract contains a penalty clause that penalizes the company a reduction of P70,000 from the contract price for every week of delay. In 2024, the contract was delayed for 8 weeks What is the gross profit for 2024? A. 1,164,000 B. 1,466,400 c. 1,724,000 D. 1,824,000

Problem 4 On March 1, 2022, AGGREGATES Company enters a contract to build a hotel which is estimated to cost P31,200,000. The company recognizes construction revenue over time. Data on this project for 2022-2024 follow: Est'd Costs Contract Costs incurred 5,460,000 9,984,000 15,756,000 Billings 10,500,000 to Complete 20,540,000 2022 2023 12,500,000 14,440,000 13,156,000 2024 The contract contains a penalty clause that penalizes the company a reduction of P70,000 from the contract price for every week of delay. In 2024, the contract was delayed for 8 weeks What is the gross profit for 2024? A. 1,164,000 B. 1,466,400 c. 1,724,000 D. 1,824,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1.On March 1, 2022, AGGREGATES Company enters a contract to build a hotel which is estimated to cost P31,200,000. The company recognizes construction revenue over time. Data on this project for 2022-2024 follow:Contract BillingsCosts incurredEst’d Costs to Complete2022 10,500,000 5,460,000 20,540,0002023 12,500,000 9,984,000 13,156,0002024 14,440,000 15,756,000 -The contract contains a penalty clause that penalizes the company a reduction of P70,000 from the contract price for every week of delay. In 2024, the contract was delayed for 8 weeksWhat is the gross profit for 2024?A. 1,164,000 C. 1,724,000B. 1,466,400 D. 1,824,000 2.MOC Construction Company started work on three job sites during the current year. Any costs incurred are expected to be recoverable. Data relating to the three jobs are given below:Site Contract PriceCost IncurredEstimated Costs to CompleteBillings on ContractCollections on Billings1 5,000,000 3,750,000 - 5,000,000 5,000,0002 7,000,000 1,000,000 4,000,000 900,000…
On March 1, 2022, AGGREGATES Company enters a contract to build a hotel which is estimated to cost P31,200,000. The company recognizes construction revenue over time. Data on this project for 2022-2024 follow: Contract Billings Costs incurred Est'd Costs to complete 2022 10,500,000 5,460,000 20,540,000 2023 12,500,000 9,984,000 13,156,000 2024 14,440,000 15,756,000 - The contract contains a penalty clause that penalizes the company a reduction of P70,000 from the contract price for every week of delay. In 2024, the contract was delayed for 8 weeks. What is the gross profit for 2024?A. 1,164,000 C. 1,724,000B. 1,466,400 D. 1,824,000
Problem 1 - Percentage of completion ABC Co. Uses the percentage of completion method to account for its construction contracts. Information on a recently completed contract with a fixed contract price of P9,100,000 is shown below: 2021 2022 2023 Costs incurred to date 2,000,000 6,300,000 ? Profit recognized each year 250,000 1,550,000 400,000 Requirement: Compute for the balance of the following A. Cost Incurred during 2023 B. Cost Incurred to date 2023
Problem 2 CONSTRUCTION COMPANY is executing a construction project, which is expected to take three years. P12,000,000. The company has signed a fixed price contract for The details of the costs incurred to date 2020 are as follows: Site labor costs 1,000,000 3,000,000 500,000 1,000,000 5,000,000 5,500,000 Costs of construction material Depreciation of PPE used in construction Marketing and selling costs EDIE Total Total contract costs estimated to complete Determine the revenue, costs and profits to be recognized overtime in 2020. GROSS REVENUE COSTS PROFIT/ (LOSS) 5,400,000 5,400,000 6,000,000 6,000,000 A. 4,500,000 5,500,000 4,500,000 5,500,000 900,000 (100,000) 1,500,000 900,000 в. c. D.
55 On March 1, 2022, ABC Co. was contracted to construct a building for a customer at a total contract price of P16,500,000. The building was estimated to be completed in 2024. The following data were made available: 2022 2023 2024 Contract costs incurred P6,400,000 P5,200,000 P2,900,000 Estimated costs to complete 6,400,000 2,900,000 - Progress billings each year 6,400,000 7,000,000 3,100,000 How much is the realized gross profit for 2024?
Problem 4 On March 1, 2022, AGGREGATES Company enters a contract to build a hotel which is estimated revenue over time. to cost P31,200,000. The company recognizes construction Data on this project for 2022-2024 follow: Contract Costs Est'd Costs Billings 10,500,000 12,500,000 to Complete 20,540,000 incurred 2022 5,460,000 9,984,000 15,756,000 2023 13,156,000 2024 14,440,000 The contract contains a penalty clause that penalizes the company a reduction of P70,000 from the contract price for every week of delay. In 2024, the contract was delayed for 8 weeks What is the gross profit for 2024? 1,164,000 1,466,400 1,724,000 1,824,000 A. c. в. D. Problem 5 MOC Construction Company started work on three job sites during the Any costs incurred are expected to be recoverable. current Data relating to year. the three jobs are given below: Site Contract Cost Estimated Costs Billings on Collections Price Incurred to Complete Contract on Billings 5,000,000 7,000,000 2,500,000 3,750,000 1,000,000…
Problem 3: Roman Construction Company (RCC) agrees to build a large office building for Carmen Towers for a total contract price of P5,000,000. The contract is signed on October 1, 2019 and RCC's year end is December 31. The total anticipated costs at October 1, 2019 is P4,500,000. Below gives further information about the contract: Total 4,000,000 2019 2020 2021 Cost incurred each year Estimated cost to complete at year end Progress billing Progress payments 1,350,000 2,250,000 400,000 3,150,000 400,000 275,000 2,100,000 400,000 2,000,000 2,600,000 2,625,000 5,000,000 5,000,000 Requirement: a. Compute for the gross profit / loss each year. b. Compute for the construction revenue for each year. c. Journal entries for 2019, 2020 and 2021, under the traditional accounting and under PFRS 15. d. Show all computations in good form.
4SMC entered into a long-term construction contract for 3 years. Contract price agreed was P4,150,000. The outcome of the contract was estimated reliably. The following data were ascertained for the contract:December 31, 2021December 31, 2022Percentage of completion30%82.5%Estimated cost to complete1,960,000840,0001.What is the total cost incurred in year 2022? 1.What is the total cost incurred in year 2022? A.4,073,750 C. 1,680,000. B.840,000. D. 3,120,000 2.The realized gross profit (loss) in year 2022 is A.650,000. C. (. 245,000) B.405,000 D. (1,055,000) 3.What is the construction cost of sales for year 2022? A.3,960,000. C. 3,233,750 B.3,120,000. D. 4,478,750 4.What is the construction-in-progress as of 2022? A.3,423,750. C. 2,065,000 B.3,310,000. D. 2,470,000
Problem 2CONSTRUCTION COMPANY is executing a construction project, which is expectedto take three years. The company has signed a fixed price contract forP12,000,000. The details of the costs incurred to date 2020 are as follows:Site labor costs 1,000,000Costs of construction material 3,000,000Depreciation of PPE used in construction 500,000Marketing and selling costs 1,000,000Total 5,000,000Total contract costs estimated to complete 5,500,000Determine the revenue, costs and profits to be recognized overtime in 2020.REVENUE COSTS GROSSPROFIT/(LOSS)A. 5,400,000 4,500,000 900,000B. 5,400,000 5,500,000 (100,000)C. 6,000,000 4,500,000 1,500,000D. 6,000,000 5,500,000 900,000
The Leto Construction Company began work on a $12.000 contract on 1/1/20. Planned completion was in 2022. The Percentage-of Completion method a used Given the following December 31 2021 $4.200 6,300 5,100 6,000 2020 2022 $11,650 $2,500 Costs incumed to dute Esbinated costs to compiete Bitingu to date Collections to date 7,600 4.000 3,800 12,000 11,900 The 12/31/21 belance of Construction in Progress is Select one O. $4300 Ob S5040 O $5.000 Od $4200 O $4800
Problem 4: Strong Construction Company was contracted on July 1, 2018 to construct a medium rise condominium for a contract price of P30M. The building is expected to be completed in 3 years. Financial information from the records of Strong Construction Company for 2018, 2019 and 2020 are given below: 2018 2019 2020 Contract costs incurred Est. costs to complete Billings during the year 7,800,000 18,200,000 8,500,000 17,200,000 6,250,000 15,000,000 6,400,000 6,500,000 Requirement: Determine the amount to be reported as contract revenue, contract costs and profit for 2018, 2019 and 2020. Show all computations in good form.
Please assits with this cost accounting question Contract Masters Ltd has entered into a contract with Creative Dealers Ltd. for the construction of a new branch office. The contract began on March 1, 2022 and was completed on December 28 2022. The total value of the contract was $12,000,000. On December 30, 2022, an engineer inspected the project and issued a final certificate for work done. The following information is available with regards to the contract: $Site labour costs 3,120,000 Materials direct to site 2,000,000Materials returned 30,500 Materials from store and workshops 500,000 Maintenance of plant and use 980,000 Direct expenses 1,090,000 General overheads 750,000 Materials…