On January 1, 2022, All Too Weld Constructions entered into a long-term construction contract to build...

   

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On January 1, 2022, All Too Weld Constructions entered into a long-term construction contract to build a road upstate to prevent travelers from getting lost. The P13 million project, which spans 22 kilometers, was completed in three years and all relevant information about the projects are as follows: For the year Cost incurred Estimated cost to complete at year end Labor hours consumed Value of work done Kilometers completed 2022 P3,000,000 P7,000,000 28,000 hours P5.200,000 5km 2023 P5.000.000 P6,000,000 20,000 hours P3,900,000 4km 2024 P3,000,000 PO 32,000 hours P3,900,000 4km 1. Using the cost-to-cost method, how much is the construction in progress, gross as of the year ended December 31, 2023? 2. Assuming that the company used the zero-profit method, how much is the realized gross profit for the rear ended December 31, 2023? 3. Assume a budget of 80,000 hours to complete the project, how much is the realized gross profit for the year ended December 31, 2022 if the input method based on labor hours was used? 4. Assuming the company used the output method based on value of the work certified by an expert, how much is the realized gross profit for the year ended December 31, 2022? I Knew You Were Rubble Inc. entered into a long-term construction contract to construct a sophisticated flood drainage system to prevent people from drowning, for an initial contract price of P20,000,000. During 2024, the contract price increased due to the change in the project design. The following data were available: Cumulative costs incurred to yearend RGP for the year Percentage of completion as of yearend 2022 P2,000,000 2 12.5% 2023 2 P700,000 60% 2024 P21,600,000 (P3,200,000) 90% 1. How much is the cost of construction to be recognized in the company's income statement for the year ended December 31, 2024? 2. How much is the construction revenue to be recognized in the company's income statement for the year ended December 31, 2024? On January 1, 2022, All Too Weld Constructions entered into a long-term construction contract to build a road upstate to prevent travelers from getting lost. The P13 million project, which spans 22 kilometers, was completed in three years and all relevant information about the projects are as follows: For the year Cost incurred Estimated cost to complete at year end Labor hours consumed Value of work done Kilometers completed 2022 P3,000,000 P7,000,000 28,000 hours P5.200,000 5km 2023 P5.000.000 P6,000,000 20,000 hours P3,900,000 4km 2024 P3,000,000 PO 32,000 hours P3,900,000 4km 1. Using the cost-to-cost method, how much is the construction in progress, gross as of the year ended December 31, 2023? 2. Assuming that the company used the zero-profit method, how much is the realized gross profit for the rear ended December 31, 2023? 3. Assume a budget of 80,000 hours to complete the project, how much is the realized gross profit for the year ended December 31, 2022 if the input method based on labor hours was used? 4. Assuming the company used the output method based on value of the work certified by an expert, how much is the realized gross profit for the year ended December 31, 2022? I Knew You Were Rubble Inc. entered into a long-term construction contract to construct a sophisticated flood drainage system to prevent people from drowning, for an initial contract price of P20,000,000. During 2024, the contract price increased due to the change in the project design. The following data were available: Cumulative costs incurred to yearend RGP for the year Percentage of completion as of yearend 2022 P2,000,000 2 12.5% 2023 2 P700,000 60% 2024 P21,600,000 (P3,200,000) 90% 1. How much is the cost of construction to be recognized in the company's income statement for the year ended December 31, 2024? 2. How much is the construction revenue to be recognized in the company's income statement for the year ended December 31, 2024?

Answer rating: 100% (QA)

1 Using the costtocost method how much is the construction in progress gross as of the year ended December 31 2023 ANSWER P11 million WORKING Cost incurred in 2022 P3000000 Estimated cost to complete ... View the full answer