In 20x1, XYZ Company enters into a construction contract with a customer. The contract price is P10,000,000.
Information on the contract follows:
20X1 20X2 20X3
Contract costs incurred during the year P2,645,132 P236,451 P2,657,000
Estimated costs to complete 2,697,451 2,116,777 -
Progress Billings 5,000,000 3,000,000 2,000,000
Collections on progress billings 2,000,000 4,000,000 4,000,000
Using the cost-to-cost method, compute the following:
Note: Use up to two (2) decimal places in presenting the answer for percentage of completion. Use six (6)
decimal places when applying the percentage.
4. Balance of "Contract Liability" at the end of 20x1 _____________
5. Percentage of completion for 20x2 _____________
6. Revenue that should be recognized in 20x2 _____________