Please help answer the following problem.
Ramos, Inc. began work in 2008 on contract #3814, which provided for a contract price of $7,200,000. Other details follow:
Costs Incurred During the Year $1,200,000 $3,675,000
Estimated Costs To Complete, As of December 31 3,600,000 0
Billings During the Year $1,350,000 $5,400,000
Collections During the Year $900,000 $5,850,000
Assume that Ramos uses the completed-contract method of accounting. The portion of the total gross profit to be recognized as income in 2009 is
Choose one answer.
Since there is no profit recorded in 2008 (completed contract method only records profits upon completion unless there are expected ...
This solution helps with a problem about total gross profit. Computations are shown and a comment is made about using "income" rather than "revenue" in the question.