A large contract is to be completed in five stages. The completion stage at the end of an accounting period shows the present position. It is a fixed price contract without any escalation clause. Phases 1. Certified 2. Completed but not certified 3. Completed 75% 4. Completed 25% 5. Incomplete Estimate Original $ 60,000 20,000 20,000 40,000 24,000 1,64,000 Revised up- todate $ 64,000 22,000 22,000 48,000 30,000 1,86,000 Actual Cost $ 62,000 21,000 16,600 12,400 Contract Price $ 80,000 30,000 26,000 60,000 28,000 1,12,000 2,24,000 Evaluate the profit to be taken in the accounts of the period if the contractor adopts (a) The percentage of completion method (b) The completed contract method. Also show the work-in- $80,000 is received as final payment for completion of the first progress in the Balance Sheet, if phase. A large contract is to be completed in five stages. The completion stage at the end of an accounting period shows the present position. It is a fixed price contract without any escalation clause. Phases 1. Certified 2. Completed but not certified 3. Completed 75% 4. Completed 25% 5. Incomplete Estimate Original $ 60,000 20,000 20,000 40,000 24,000 1,64,000 Revised up- todate $ 64,000 22,000 22,000 48,000 30,000 1,86,000 Actual Cost $ 62,000 21,000 16,600 12,400 Contract Price $ 80,000 30,000 26,000 60,000 28,000 1,12,000 2,24,000 Evaluate the profit to be taken in the accounts of the period if the contractor adopts (a) The percentage of completion method (b) The completed contract method. Also show the work-in- $80,000 is received as final payment for completion of the first progress in the Balance Sheet, if phase.