During 2023, Marigold Corp. started a construction job with a total contract price of $1072000. Marigold has consistently used the completed-contract method. The job was completed on December 15, 2024. Additional data are as follows: Actual costs incurred Estimated remaining costs Billings to date Collections to date 2023 $405000 405000 $120300 $0 $140200 O $209800 361000 208000 2024 $457200 695300 481300 For 2024, what amount should Marigold recognize as gross profit?

During 2023, Marigold Corp. started a construction job with a total contract price of $1072000. Marigold has consistently used the completed-contract method. The job was completed on December 15, 2024. Additional data are as follows: Actual costs incurred Estimated remaining costs Billings to date Collections to date 2023 $405000 405000 $120300 $0 $140200 O $209800 361000 208000 2024 $457200 695300 481300 For 2024, what amount should Marigold recognize as gross profit?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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During 2025, Cullumber Company started a construction job with a contract price of $1,620,000. The job was completed in 2027. The following information is available. Costs incurred to date. Estimated costs to complete Billings to date. Collections to date. 2026 $393,900 $889,380 616,100 208,620 303,000 902.000 273,000 814,000. 2025 2027 $1,061,000 -0- 1,620,000 1,418,000
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During 2023, Grouper Corporation started a construction job with a contract price of $4.34 million. Grouper ran into severe technical difficulties during construction but managed to complete the job in 2025. The contract is non-cancellable. Under the terms of the contract, Grouper sends billings as revenues are earned. Billings are non-refundable. The following information is available: Costs incurred to date Estimated costs to complete 2023 2024 $620,000 $2,170,000 3,255,000 2,170,000 2025 $4,240,000 -0- Assume billings for the construction contract were as follows: 2023, $520,000: 2024, $2,050,000; and 2025, $1,770,000.
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