Somo Corp. uses the cost-to-cost method for long term contracts. The corporation signs a contract for $80,000
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Somo Corp. uses the cost-to-cost method for long term contracts. The corporation signs a contract for $80,000 for a construction project. It is estimated that construction will take 2 years and will cost $50,000.
In year 1 costs incurred $20,000
Year 2 costs incurred $30,000
How much revenue does Somo recognize in year 1 and year 2? What is gross profit in year 1?
Related Book For
College Algebra Graphs and Models
ISBN: 978-0321845405
5th edition
Authors: Marvin L. Bittinger, Judith A. Beecher, David J. Ellenbogen, Judith A. Penna
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