On February 1, 2015, Marsh Contractors agreed to construct a building at a contract price of
€5,800,000. Marsh estimated total construction costs would be €4,000,000 and the project would be finished in 2017. Information relating to the costs and billings for this contract is as follows: 2015 2016 2017
Total costs incurred to date
€1,500,000
€2,640,000
€4,600,000
Estimated costs to complete
2,500,000
1,760,000
-0-
Customer billings to date
2,200,000
4,000,000
5,600,000 Collections to date
2,000,000
3,500,000
5,500,000
Instructions
Fill in the correct amounts on the following schedule. For percentage-of-completion accounting and for cost-recovery accounting, show the gross profit that should be recorded for 2015, 2016, and 2017.
Percentage-of-Completion Cost-Recovery Gross Profit Gross Profit 2015 2015
2016 2016
2017 2017