Sta. Clara Construction Company has used the cost to cost percentage of completion method
of recognizing revenue. In reviewing the records, Sta. Clara finds the following information
regarding a recently completed building project for which the total contract was P 20,000,000.
Gross profit (Loss)
Cost incurred
2019
P 400,000
3,600,000
2020
1,400,000
2021
( 200,000)
8,200,000
Sta. Clara wants to know how effectively the company operate d during the last 3 years on this
project and, since the information is not complete, has asked you to analyze the project as to
the amount of revenue, costs, gross profit and percentage of completion recognized during
the 3 years.
Required:
1.
2.
3.
4.
5.
6.
How much is the contract revenue during 2019?
What is the percentage of completion in 2019?
How much is the cost incurred in 2020?
What is the percentage of completion in 2020?
How much is the total estimated cost to complete in 2020?
How much is the total estimated gross profit in 2020?