AC 302 WEEK 2 Problem 18A 11

AC 302 WEEK 2 Problem 18A 11
On March 1 2014 Pechstein Construction Company contracted to construct a factory building for Fabrik Manufacturing Inc. for a total contract price of $7,224,000. The building was completed by October 31, 2016. The annual contract costs incurred, estimated costs to complete the contract, and accumulated billings to Fabrik for 2014, 2015, and 2016 are given below.
		2014		2015		2016
Contract costs incurred during the year		$2,476,800		$1,917,800		$1,883,400
Estimated costs to complete the contract at 12/31		3,027,200		1,883,400		0
Billings to Fabrik during the year		2,752,000		3,010,000		1,462,000



	 
 
 	Using the percentage-of-completion method, compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2014, 2015, and 2016. (Ignore income taxes.) (Enter loss amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
		2014		2015		2016	
Profit/ (Loss)		$  
	$  
	$  




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 	Using the completed-contract method, compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2014, 2015, and 2016. (Ignore incomes taxes.) (Enter loss amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
		2014		2015		2016	
Profit/ (Loss)		$  
	$  
	$  

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