500,000 $(65840) $(199,375) LOSS RECOGNIZED IN YEAR 2 *(CONTRACT P...
2,500,000
$(652,840)
$(199,375)
Loss recognized in Year 2
*(Contract price × 45.45%) - revenue recognized in Year 1 Revenue recognized in Year 2 on project.
† Cumulative revenue recognized up to Year 1 on project (computed in prior discussion).
Page: 112
Dr. Construction expense 2,797,360
2,500,000
Cr. Construction in progress 652,840 199,375
Cr. Revenue from long-term contracts 2,144,520 2,300,625
Section C: Performance Management
Topic 3: Performance Measures
Page: 371
Question 1C1-CQ2216
Page: 372
Question 1C1-CQ18
The financial statements show a $3,000 loss for a job that was budgeted to show a $6,000 profit.
Actual (purchased and used)
Budget
d. The flexible budget variance was $900 unfavorable favorable.
Section D: Cost Management
Topic 5: Business Process Improvement
Page: 504