Question
Total contract price $100,000
Actual costs during 2006 20,000
Estimated remaining costs 40,000
Billed to customer during 2006 30,000
Received from customer during 2006 10,000
16. Under the completed contract method, how much should Hickam recognize as gross profit for 2006?
a. $-0-
b. $4,000
c. $10,000
d. $12,000
17. Under the percentage of completion method, how much should Hickam recognize as gross profit for 2006?
a. $-0-
b. $13,333
c. $26,667
d. $33,333
Actual costs during 2006 20,000
Estimated remaining costs 40,000
Billed to customer during 2006 30,000
Received from customer during 2006 10,000
16. Under the completed contract method, how much should Hickam recognize as gross profit for 2006?
a. $-0-
b. $4,000
c. $10,000
d. $12,000
17. Under the percentage of completion method, how much should Hickam recognize as gross profit for 2006?
a. $-0-
b. $13,333
c. $26,667
d. $33,333