Posted: April 17th, 2016

What is the companies gross profit??

Avengers Construction Company

On March 1, 2012, Avengers Construction Company contracted to construct a factory building for Marvel Manufacturing Inc. for a total contract price of $6,500,000. The building was completed by October 31, 2014. The annual contract costs incurred, estimated costs to complete the contract, and accumulated billings to Marvel for 2012, 2013, and 2014 are given below.

2012 2013 2014
Contract costs incurred during the year $1,750,000 $2,432,000 $1,825,000
Estimated costs to complete the contract at 12/31 $4,500,000 $1,968,000 $0
Billings to Fabrik during the year $1,950,000 $3,050,000 $1,500,000
Collections from Pie during the year $1,400,000 $2,085,000 $3,015,000

1). Assume Marvel uses the percentage of completion method. Provide the following amounts:

Revenues reported in 2012:
Expenses reported in 2013:
Gross Profit (Loss) reported in 2013:
Gross Profit (Loss) reported in 2014:

2). Assume Avengers uses the completed contract method. Provide the following amounts:

Revenues reported in 2012:
Expenses reported in 2013:
Gross Profit (Loss) reported in 2013:
Gross Profit (Loss) reported in 2014:

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