Homework SourseRequired information The following information applies to th
Required information [The following information applies to the questions displayed below.] In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2020. Information related to the contract is as follows: 2018 2019 2020 Cost incurred during the year $ 2,490,000 $ 3,984,000 $ 2,008,600 Estimated costs to complete as of year-end 5,810,000 1,826,000 0 Billings during the year 2,030,000 4,444,000 3,526,000 Cash collections during the year 1,815,000 3,900,000 4,285,000 Westgate recognizes revenue over time according to percentage of completion. rev: 09_15_2017_QC_CS-99734 5. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.) 2018 2019 2020 Cost incurred during the year $ 2,490,000 $ 3,815,000 $ 3,945,000 Estimated costs to complete as of year-end 5,810,000 4,130,000 0 rev: 09_15_2017_QC_CS-99734 Next Visit question mapQuestion 5 of 8 Total 5 of 8 Prev
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| Percentage completion method | 2018 | 2019 | 2020 | |
| Cost incurred in till previous year | 0 | 2490000 | 6474000 | |
| ADD | Cost incurred during the year | 2490000 | 3984000 | 2008600 |
| Total cost incurred till date | 2490000 | 6474000 | 8482600 | |
| ADD | Estimated cost to be incurred | 5810000 | 1826000 | 0 |
| Total estimated cost to be incurred | 8300000 | 8300000 | 8482600 | |
| Percentage of completion (A) | 30% | 78.00% | 100% | |
| (cost incurred till date /total estimated cost ) | ||||
| Total revenue (B) | 10000000 | 10000000 | 10000000 | |
| Total revenue recognized (A *B) | 3000000 | 7800000 | 10000000 | |
| Less | Revenue recognized in previous year | 0 | 3000000 | 7800000 |
| revenue recognized in current year | 3000000 | 4800000 | 2200000 | |
| 2018 | 2019 | 2020 | ||
| Revenue | 3000000 | 4800000 | 2200000 | |
| Less | Cost incurred | 2490000 | 3984000 | 2008600 |
| Gross profit | 510000 | 816000 | 191400 |
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