Thompson Construction began a construction project in 2016. The contract price was $1,250,000, and the estimated costs were $1,000,000. Data for each year of the contract are as follows:

	2016	2017	2018
Costs incurred during the year	$250,000	$600,000	$190,000
Estimated costs to complete	750,000	212,500	-0-
Partial Billings	375,000	500,000	375,000
Collections	187,500	469,000	593,500

Instructions: Assuming Thompson satisfies its performance obligation over time:

1.) Prepare a schedule that computes the gross profit for 2016 - 2018.

2.) Determine balance of Construction in Progress at the end of 2016

3.) Determine the net amount for construction in progress inventory should be reported on the 2017 balance sheet.

Answer rating: 100% (QA)

1 Calculation of Gross Profit Particulars 2016 Calculation Working Amount 2016 Turnover Sale Given 3... View the full answer