Star Construction Corp. has a contract to construct a building for $10,868,900. The building is controlled by the customer throughout the term of the contract. Total costs to complete the building were originally estimated at $8,793,500. Construction commenced on 4 February 20X5. Actual costs were in line with estimated costs for 20X5 and 20X6. In 20X7, actual costs exceeded estimated costs by $140,500. Total construction costs incurred in each year were as follows: 20X5 20X6 20X7 $2,680, 200 $4,467,000 $1,786,800 Billings (and cash collections) each year were as follows: 20X5 20X6 20X7 $2,283,000 $4,863,800 $3,722,100 Required: 1. Calculate the revenues and gross profit for the construction project for each of the three years assuming the company uses inputs to measure progress. (Round intermediate calculations to 2 decimal places. Round final answers to nearest whole dollars.)

Star Construction Corp. has a contract to construct a building for $10,868,900. The building is controlled by the customer throughout the term of the contract. Total costs to complete the building were originally estimated at $8,793,500. Construction commenced on 4 February 20X5. Actual costs were in line with estimated costs for 20X5 and 20X6. In 20X7, actual costs exceeded estimated costs by $140,500. Total construction costs incurred in each year were as follows: 20X5 20X6 20X7 $2,680, 200 $4,467,000 $1,786,800 Billings (and cash collections) each year were as follows: 20X5 20X6 20X7 $2,283,000 $4,863,800 $3,722,100 Required: 1. Calculate the revenues and gross profit for the construction project for each of the three years assuming the company uses inputs to measure progress. (Round intermediate calculations to 2 decimal places. Round final answers to nearest whole dollars.)

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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