Cosmo Computer Consultants (CCC) signed a contract in 2015 to develop a computer network system for platinum Entertainment. Cosmo uses the percentage-of-completion method and determines its measure of progress using the cost-to-cost approach. The firm provided the following information for 2015.
2015 Contract price$85,000
Actual construction costs incurred during the year …………… $12,000
Progress billings made during in year…………………………..$30,500
Cash collections during the year……………………………… $25,000
Compute the percentage completed, gross profit recognized, and the amount of the revenue recorded in 2015.