AC 302 Chapter 18 Question 14

AC 302 Chapter 18 Question 14
Name				Date		
Instructor				Course		
Intermediate Accounting 14th Edition by Kieso Weygandt and Warfield						
Primer on Using Excel in Accounting by Rex A Schildhouse						
						
E18-14 (Gross Profit on Uncompleted Contract) On April 1, 2012, Dougherty Inc. entered into a cost-plus-fixed-fee contract to construct an electric generator for Altom Corporation. At the contract date, 						
						
Dougherty estimated that it would take 2 years to complete the project at a cost of 						$2,000,000 
The fixed fee stipulated in the contract is			$450,000 	Dougherty appropriately accounts for this 		
contract under the percentage-of-completion method. During 2012, Dougherty incurred costs of 						
$800,000 	related to the project. The estimated cost at December 31, 2012, to complete the 					
contract is	$1,200,000 	Altom was billed		$600,000 	under the contract.	
						
Instructions:						
Prepare a schedule to compute the amount of gross profit to be recognized by Dougherty under the contract for the year ended December 31, 2012. Show supporting computations in good form.						
						
						
DOUGHERTY INC.						
Computation of Gross Profit to Be Recognized on Uncompleted Contract						
For The Year Ended December 31, 2012						
						
	Total contract price					
	Title				Amount	
						
	Title				Amount	
	Total				Formula	
						
	Total estimated cost				Amount	
	Title				Amount	
	Title				Formula	
	Gross profit to be recognized				Formula