Problem 7-7

2014 2015 2016 Total

Recognized Revenue 1,100,000 1,300,000 1,100,000 3,500,000
Cost of revenue 1,000,000 1,250,000 1,150,000 3,400,000
Gross Profit ( loss) 100,000 50,000 -50,000 100,000

2014 2015
Contract Price 3,500,000 3,500,000
Cost incurred to date 1,000,000 2,250,000
Estimated cost to complete 2,250,000 950,000
Total Estimated Cost 3,250,000 3,200,000
Total Estimated Gross Profit 250,000 300,000
Percentage of Completion 30.77% 70.31%
Gross Profit to date 76925 210937.5
Less: GP recognized in prior year/s 76,925
GP to be recognized this year 76925 134,013