Ube Construction Company has consistently used the percentage of completion. On January 10, 2007, Ube began work on a P 6,000,000 construction contract. At the inception date, the estimated cost of construction was P 4,500,000. The following relate to the progress of the contract: Income recognized at 12/31/2007 P 600,000 Costs incurred 1/10/2007 through 12/31/2008 3,600,000 Estimated cost to complete at 12/31/2008 1,200,000 How much income should Ube recognize for the year ended December 31, 2001? P 300,000 P 525,000 P 600,000 P 900,000

Ube Construction Company has consistently used the percentage of completion. On January 10, 2007, Ube began work on a P 6,000,000 construction contract. At the inception date, the estimated cost of construction was P 4,500,000. The following relate to the progress of the contract: Income recognized at 12/31/2007 P 600,000 Costs incurred 1/10/2007 through 12/31/2008 3,600,000 Estimated cost to complete at 12/31/2008 1,200,000 How much income should Ube recognize for the year ended December 31, 2001? P 300,000 P 525,000 P 600,000 P 900,000

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter8: Revenue Recognition, Receivables, And Advances From Customers

Section: Chapter Questions

Problem 34E

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