WestCoast Co. started a contract in June 2020 to build a bridge at a fixed price of $14 million. The bridge was to be completed by October 2022. Total cumulative costs incurred by the end of December 2020 and 2021 were $2 million and $6 million, respectively. WestCoast Co. is unable to estimate the total costs of the project prior to completion. Final costs at the end of the project totaled $11 million.
Required:
Determine the amount of revenue, cost of sales, and gross profit WestCoast Co. would report in 2020, 2021, and 2022.
$$\begin{array} { | r | r | r | r | }
\hline & 2020 & 2021 & 2022 \
\hline \text { Revenue } & & & \
\hline \text { Cost of sales } & & & \
\hline \text { Gross profit } & & & \
\hline
\end{array}$$

Question

WestCoast Co. started a contract in June 2020 to build a bridge at a fixed price of $14 million. The bridge was to be completed by October 2022. Total cumulative costs incurred by the end of December 2020 and 2021 were $2 million and $6 million, respectively. WestCoast Co. is unable to estimate the total costs of the project prior to completion. Final costs at the end of the project totaled $11 million.
Required:
Determine the amount of revenue, cost of sales, and gross profit WestCoast Co. would report in 2020, 2021, and 2022.
 $$\begin{array} { | r | r | r | r | } 
\hline & 2020 & 2021 & 2022 \
\hline \text { Revenue } & & & \
\hline \text { Cost of sales } & & & \
\hline \text { Gross profit } & & & \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer of WestCoast Co. started a contract in June 2020 to build a bridge at a fixed price of $14 million. The bridge was to be completed by October 2022. Total cumulative costs incurred by the end of December 2020 and 2021 were $2 million and $6 million, respectively. WestCoast Co. is unable to estimate the total costs of the project prior to completion. Final costs at the end of the project totaled $11 million.
Required:
Determine the amount of revenue, cost of sales, and gross profit WestCoast Co. would report in 2020, 2021, and 2022.
 $$\begin{array} { | r | r | r | r | } 
\hline & 2020 & 2021 & 2022 \
\hline \text { Revenue } & & & \
\hline \text { Cost of sales } & & & \
\hline \text { Gross profit } & & & \
\hline
\end{array}$$