AJD Builders is building a multi-unit residential complex. In the prior year, AJD Builders entered into a contract with a customer for a specific unit that is under construction. AJD Builders has determined that the contract is a single performance obligation satisfied over time AJD Builders gathered the following information for the contract during the year.

AJD Builders - Year Ended December 31, 20x8 Costs to date. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P15,000,000 Future expected costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000,000 Work certified to date. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000,000 Expected sales value. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,000,000 Revenue taken in earlier periods*. . . . . . . . . . . . . . . . . . . . . . . . P12,000,000 Cost taken in earlier periods*. . . . . . . . . . . . . . . . . . . . . . . . . 9,500,000 *same amount for both methods (output and input method)

Calculate the figures to be included in the statement of profit or loss in respect of revenue and costs for the year ended December 31, 20x8 on both methods (I) Input Method (Cost basis), and (II) Output Method (Sales Basis):

1. Calculate total expected profit for the year 20x8:

a. P22,000,000

b. P17,000.000

c. P 7,000,000

d. P 4,000,000

2. Measure of progress towards completion (percentage of completion): a. Input/Cost Basis 60.00%

Output/Sales Basis

56.25%

b .Input/Cost Basis 56.25%

Output/Sales Basis 60.00%

c. Input/Cost Basis 45.45%

Output/Sales Basis 31.25%

d. Input/Cost Basis 31.25%

Output/Sales Basis 45.45%

3. What amounts should be shown in the statement of profit or for revenue, cost of sales and profit the year using an output method (sales basis)?

Revenue Cost of Sales Gross Profit

a. P 7,200,000 P 5,500,000 P 1,700,000

b. P 6,000,000 P 4,562,500 P 1,437,500

c. P 12,000,000 P 9,500,000 P 2,500,000

d. P 19,200,000 P 15,000,000 P 4,200,000

4. What amounts should be shown in the statement of profit or for revenue, cost of sales for the year using an Input method (cost basis)?

Revenue Cost of Sales Gross Profit

a) P 7,200,000 P 5,500,000 P 1,700,000

b) P 6,000,000 P 4,562,500 P 1,437,500

c) P 12,000,000 P 9,500,000 P 2,500,000

d) P 19,200,000 P 15,000,000 P 4,200,000