Explore BrainMass

Explore BrainMass

    Gross Profit recognized

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Logan, Inc. began work in 2004 on a contract for $6,300,000.
    2004 2005
    Costs incurred to date 2,700,000 4,200,000
    Estimated costs to complete 1,800,000 -
    Billing to date 2,100,000 6,300,0000
    Collection to date 1,500,000 5,400,000

    a)What the gross profit to be recognized in 2004 using the percentage-of-completion method?
    b)What the gross profit to be recognized in 2005 using the completed-contract method?

    © BrainMass Inc. brainmass.com June 3, 2020, 9:33 pm ad1c9bdddf
    https://brainmass.com/business/accounting/gross-profit-recognized-188250

    Solution Preview

    a)What the gross profit to be recognized in 2004 using the percentage-of-completion method?

    We first find the percentage completion.
    Percentage complete = Total costs ...

    Solution Summary

    The solution explains how to calculate the gross profit under percentage of completion method and under the completed contract method

    $2.19

    ADVERTISEMENT