On January 1, 2021. Robredo Co. started the construction of a building with a fixed contract price of P10,000,000. The outcome of the construction project can be estimated reliably and the contractor decided to employ cost to cost method. The following data are provided by the accountant and project manager concerning the construction costs for the three years of construction: Year Costs incurred during the year Realized gross profit/(loss) during the year Percentage of completion as of the end of the year 12/31/2021 12/31/2022 12/31/2023 ? ? P 3740000 P750,000 (P250,000) (P800,000) 50% 37.5% ? What is the balance of Construction in Progress on December 31, 2023?

On January 1, 2021. Robredo Co. started the construction of a building with a fixed contract price of P10,000,000. The outcome of the construction project can be estimated reliably and the contractor decided to employ cost to cost method. The following data are provided by the accountant and project manager concerning the construction costs for the three years of construction: Year Costs incurred during the year Realized gross profit/(loss) during the year Percentage of completion as of the end of the year 12/31/2021 12/31/2022 12/31/2023 ? ? P 3740000 P750,000 (P250,000) (P800,000) 50% 37.5% ? What is the balance of Construction in Progress on December 31, 2023?

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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On January 1, 2011, DMCI Inc. started the construction of a building with a fixed contract price of P10,000,000. The outcome of the construction project can be estimated reliably and the contractor decided to employ cost to cost method. The following data are provided by the accountant and project manager concerning the construction costs for the three years of construction: 12/31/2013 Year 12/31/2011 12/31/2012 Costs incurred during the year P1,500,000 P3,740,000 Realized gross profit/(loss) during the P750,000 (P250,000) (P800,000) year Percentage of completion as of the end 37.5% 50% 80% of the year What is the balance of Construction in Progress on DMCI Inc.'s Statement of Financial Position on December 31, 2013? 7,480,000 8,280,000 7,940,000 8,000,000
On January 1, 2011, DMCI Inc. started the construction of a building with a fixed contract price of P10,000,000. The outcome of the construction project can be estimated reliably and the contractor decided to employ cost to cost method. The following data are provided by the accountant and project manager concerning the construction costs for the three years of construction: Year 12/31/2011 12/31/2012 12/31/2013 Costs incurred during the year ? P1,500,000 P3,740,000 Realized gross profit/(loss) during the year P750,000 (P250,000) (P800,000) Percentage of completion as of the end of the year 37.5% 50% 80% What is the balance of Construction in Progress on DMCI Inc.’s Statement of Financial Position on December 31, 2013? A. 7,480,000 B. 7,940,000 C. 8,000,000 D. 8,280,000
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