ABC Construction Co has two projects for which it reported, as of December 31, 20x6, the following information (in thousand pesos):

Project A
Contract price P 4,800
20x5 Cost incurred P 3,400
20x5 Percentage completed 75%
20x6 Cost incurred P 1,250
20x6 Percentage completed 25%

Project B
Contract price P 860
20x6 Cost incurred P 140
20x6 Percentage completed 15%

Using percentage of completion (over time) method of revenue recognition, gross profit on Project A to be recognized in 20x5 would be:

Answer rating: 100% (QA)

Gross Profit Recognition for Project A in 20x5 using Percentage of Completion Method Based on the pr... View the full answer