4. DM, Inc. works on a P10,500,000 contract in 2022 to construct an office building. During 2022, DM, Inc. uses the cost to cost method. At December 31, 2022, the balances in certain accounts were: Construction in progress-P3,780,000 Accounts receivable - P360,000 Billings on construction in process P1,800,000 Contract retention - P180,000 Mobilization fee - P140,000. At December 31, 2022, the estimated cost at completion is P7,350,000. How much is the realized gross profit in 2022? a. 1,102,500 b. 1,062,500 c. 1,242,500 d. 1,134,000

4. DM, Inc. works on a P10,500,000 contract in 2022 to construct an office building. During 2022, DM, Inc. uses the cost to cost method. At December 31, 2022, the balances in certain accounts were: Construction in progress-P3,780,000 Accounts receivable - P360,000 Billings on construction in process P1,800,000 Contract retention - P180,000 Mobilization fee - P140,000. At December 31, 2022, the estimated cost at completion is P7,350,000. How much is the realized gross profit in 2022? a. 1,102,500 b. 1,062,500 c. 1,242,500 d. 1,134,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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