Question

The following details apply to a contract where performance obligations are satisfied over time at 31 December 20X5. $ Total contract revenue 120,000 Costs to date 48,000 Estimated costs to completion 48,000 Amounts invoiced 50,400 The contract is agreed to be 45% complete at 31 December 20X5. What amount should appear in the statement of financial as at 31 December 20X5 as a contract asset?

Name: the following details apply to a contract where performance obligations are satisfied over time at 31 december 20x5 total contract revenue 120000 costs to date 48000 estimated costs to compl 94661
Uploaded: 2024-04-27T06:28:55-08:00
Duration: 3 min 45 s
Channel: Adi S
Description: the following details apply to a contract where performance obligations are satisfied over time at 31 december 20x5 total contract revenue 120000 costs to date 48000 estimated costs to compl 94661

          The following details apply to a contract where performance obligations are satisfied over time at 31
December 20X5.
$
Total contract revenue 120,000
Costs to date 48,000
Estimated costs to completion 48,000
Amounts invoiced 50,400
The contract is agreed to be 45% complete at 31 December 20X5.
What amount should appear in the statement of financial as at 31 December 20X5 as a contract asset?

Added by Mark M.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Adi S

04/27/2024

Step 1

First, we need to calculate the total contract cost: Costs to date + Estimated costs to completion = 48,000 + 48,000 = 96,000. Show more…

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The following details apply to a contract where performance obligations are satisfied over time at 31 December 20X5. $ Total contract revenue 120,000 Costs to date 48,000 Estimated costs to completion 48,000 Amounts invoiced 50,400 The contract is agreed to be 45% complete at 31 December 20X5. What amount should appear in the statement of financial as at 31 December 20X5 as a contract asset?