Digger commenced contract X47 on July 1, 20x3. Performance obligations under the contract are to be satisfied over time and the stage of completion is regularly assessed. Details for first year of the contract were as follows:

Amounts invoiced P2,400,000
Costs incurred at date of last assessment 1,800,000
Costs incurred since last assessment 200,000
Amount received 2,100,000
Total contract price 4,200,000
Estimated costs to complete 1,200,000
Survey of performance completed 2,520,000

Digger invoices the customer immediately on receiving an assessment of the value of the work done. 

What amount should Digger include as cost of sales for the X47 contract for the year ended June 30, 20x4, assuming revenue is based on performance completed?

Answer rating: 100% (QA)

To determine the cost of sales for the X47 contract for the year ended June 30 20x4 we need to calcu... View the full answer