Shumpert, Inc., entered into a contract that was to take two years to complete, with an estimated cost of $900,000. The contract price was $1,300,000. Costs of the contract for 2016, the first year, totaled $675,000.
a. What was the gross profit reported by the percentage of completion method for 2016?
b. After the contract was completed at the end of 2017 at a total cost of $950,000, what was the gross profit reported by the percentage of completion method for 2017?