During 2018, the entity billed the customer equivalent to 30% of the contract price. During 2019, the entity billed again the customer amounting to 20% of the contract price. During 2020 the entity billed again the customer amounting to 40% of the contract price. The remaining billing was made at the year of completion of the project. The entity made collection from the customer at the end of 2018, 2019 and 2020, in the amount of P120,000, P450,000 and P180,000, respectively. The entity provided the following data concerning the direct costs related to the said project: 2020 2018 2019 Cumulative costs incurred at year-end 360,000 800,000 870,000 Remaining estimated costs to complete at year- 840,000 250,000 50,000 end What is the realized gross profit for the year ended December 31, 2019? Group of answer choices 50,000 150,000 200,000

During 2018, the entity billed the customer equivalent to 30% of the contract price. During 2019, the entity billed again the customer amounting to 20% of the contract price. During 2020 the entity billed again the customer amounting to 40% of the contract price. The remaining billing was made at the year of completion of the project. The entity made collection from the customer at the end of 2018, 2019 and 2020, in the amount of P120,000, P450,000 and P180,000, respectively. The entity provided the following data concerning the direct costs related to the said project: 2020 2018 2019 Cumulative costs incurred at year-end 360,000 800,000 870,000 Remaining estimated costs to complete at year- 840,000 250,000 50,000 end What is the realized gross profit for the year ended December 31, 2019? Group of answer choices 50,000 150,000 200,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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