Extra Credit Homework Opportunity

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.

Contract costs incurred during the year
Estimated costs to complete the contract at 12/31
Billings to Pie during the year
Collections from Pie during the year

2012
$1,750,000
4,500,000
1,950,000
1,400,000

2013
$2,432,000
1,968,000
3,050,000
2,085,000

2014
$1,825,000
0
1,500,000
3,015,000

Note: If necessary, round to the nearest full percentage and/or dollar.
1. (1 point)
Assume Avengers 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. (1 point)
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: ____________________