Describe the amount of gross profit to be recognized, Accounting Basics

+44 141 628 6080
[email protected]

Describe the amount of gross profit to be recognized

During 2010 Nielsen Company started a construction job with a contract price of $1,886,400. The job was completed in 2012. The following information is available.

2010 2011 2012
Costs incurred to date $471,600 $972,675 $1,261,530
Estimated costs to complete 707,400 324,225 -0-
Billings to date 353,700 1,061,100 1,886,400
Collections to date 318,330 954,990 1,680,075

(a) Compute the amount of gross profit to be recognized each year assuming the percentage-of-completion method is used.
Gross profit recognized in current year

2010
2011
2012

(b) Prepare all necessary journal entries for 2011.

(c) Compute the amount of gross profit to be recognized each year assuming the completed-contract method is used.
Gross Profit Recognized in:

2010
2011
2012

View Complete Question

Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Describe the amount of gross profit to be recognized

Reference No:- TGS0706010

Expected delivery within 24 Hours

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Accounting Basics

Q : How to increase the companys profits the most

Wave-Zone Company has 10,000 units of its sole product that it produced last year at a cost of $50 each. This year's model is superior to last year's and the 10,000 units cannot be sold for their regular selling price of $75 each.

Q : What is the correct calculation to determine dollar amount

Assume markup percentage equals desired profit divided by total costs. What is the correct calculation to determine the dollar amount of the markup per unit?

Q : Using the discounted cash flow technique

Morgan Company is considering a capital investment of $180,000 in additional productive facilities. The new machinery is expected to have a useful life of 6 years with no salvage value.

Q : Why dunkin company manufactures and sells a single product

Dunkin Company manufactures and sells a single product that sells for $480 per unit; variable costs are $300. Annual fixed costs are $990,000. Current sales volume is $4,200,000. Compute the break-even point in dollars.

Q : Describe the amount of gross profit to be recognized

During 2010 Nielsen Company started a construction job with a contract price of $1,886,400. The job was completed in 2012. The following information is available.

Q : Calculate the idle capacity to rework these items

Sandlewood Company has 15,000 units of its sole product that it produced last year at a cost of $43 each. This year's model is superior to last year's and the 15,000 units cannot be sold for their regular selling price of $80 each.

Q : Explain the total cash collections

The company's past records show collection of credit sales as 60% in the month of sale and the balance in the following month. If inventory units are sold for $25, the total cash collections in November will be what?

Q : Discuss the effect on income if paz decides to make

The required volume of output to produce the motors will not require any incremental fixed overhead. Incremental variable overhead cost is $21 per motor.

Q : What would the amount of purchases be for june

A sales budget has been prepared for June. Management wants the amount of ending inventory each month to be equal to 10% of the next month's cost of goods sold.

1945012

Questions
Asked

3,689

Active Tutors

1412126

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Describe the amount of gross profit to be recognized

Reference No:- TGS0706010

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : How to increase the companys profits the most

Q : What is the correct calculation to determine dollar amount

Q : Using the discounted cash flow technique

Q : Why dunkin company manufactures and sells a single product

Q : Describe the amount of gross profit to be recognized

Q : Calculate the idle capacity to rework these items

Q : Explain the total cash collections

Q : Discuss the effect on income if paz decides to make

Q : What would the amount of purchases be for june

What statements concerning drug treatment is true

Problematic nighttime awakening

What risk factors does jd have for dvt

How to improve the health literacy of the population

Patient comes to the clinic with complaint of loss of energy

Explain heuristics of interview questions to the individual

Discussion about knowledgeable agent

Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Describe the amount of gross profit to be recognized

Reference No:- TGS0706010

Recent Questions Asked Accounting Basics

Q : How to increase the companys profits the most

Q : What is the correct calculation to determine dollar amount

Q : Using the discounted cash flow technique

Q : Why dunkin company manufactures and sells a single product

Q : Describe the amount of gross profit to be recognized

Q : Calculate the idle capacity to rework these items

Q : Explain the total cash collections

Q : Discuss the effect on income if paz decides to make

Q : What would the amount of purchases be for june

Asked Questions