Menu
support@graduatecourseshelp.com
+1(805) 568 7317

multiple years of revenues and costs cost to cost method the company signed a 1 200 692093

Multiple Years of Revenues and Costs: Cost to Cost Method

The company signed a $1,200,000 contract to build an environmentally friendly access trail to Deseret Peak. The project was expected to take approximately 3 years. The following information was collected for each year of the project, Year 1, Year 2, and Year 3:

 

Cost

Expected

Trail Feet

Additional

 

Expended

Additional

Constructed

Trail Feet

 

during

Cost to

during

to Be

 

the Year

Completion

the Year

Constructed

Year 1

$200,000

$550,000

8,000

16,200

Year 2

350,000

280,000

12,500

4,100

Year 3

250,000

0

4,000

0

The company uses the percentage of completion method of computing revenue from long term construction contracts. Assume that the company employs the cost to cost method of estimating the percentage of completion. Make the journal entries to record revenue and cost for the construction project—(1) Year 1, (2) Year 2, and (3) Year 3.

"Order a similar paper and get 15% discount on your first order with us
Use the following coupon
"GET15"

Order Now