Beck Construction Company began work on a new building project on January 1, 2015. The project is
Question:
Beck Construction Company began work on a new building project on January 1, 2015. The project is to be completed by December 31, 2017, for a fixed price of $120 million. The following are the actual costs incurred and estimates of remaining costs to complete the project that were made by Beck's accounting staff: |
Years | Actual costs incurred in each year | Estimated remaining costs to complete the project (measured at Dec. 31 of each year) | ||
2015 | $34 million | $68 | million | |
2016 | $53 million | $53 | million | |
2017 | $39 million | $ 0 | million | |
Required: | |||||||||||||||||||
What amount of gross profit (or loss) would Beck record on this project in each year, assuming that Beck recognizes revenue for this project upon completion of the project? Place answers in the spaces provided below and show supporting computations. (Loss amounts should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) | |||||||||||||||||||
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Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello