E12. WEIS Construction Company uses the percentage-of-completion method of accounting. In 2020, WEIS began work under contract #E2-D2, which provided for a contract price of $2,187,000. Other details...




E12.


WEIS Construction Company uses the percentage-of-completion method of accounting. In 2020, WEIS began work under contract #E2-D2, which provided for a contract price of $2,187,000. Other details follow:












































2020



2021

Costs incurred during the year$658,560$1,408,000
Estimated costs to complete, as of December 31909,440–0–
Billings during the year421,0002,187,000
Collections during the year348,0001,527,000







(a) What portion of the total contract price would be recognized as revenue in 2020? In 2021?





















Revenue recognized in 2020
$

Revenue recognized in 2021
$



(b) using the information above, but assuming the company uses the completed-contract method of accounting, what portion of the total contract price would be recognized?















Revenue recognized in 2020
$

Revenue recognized in 2021
$






Jun 11, 2022
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