Craft Construction
Craft Construction Entered into a Contract to Construct

question 14

Essay

Craft Construction
Craft Construction entered into a contract to construct a generator station for a utility customer. The project was started in 2016 and completed in 2017. Cost and other information is presented below.
$\begin{array}{lrc}&2016&2017\\\text { Costs incurred during the year } & \$ 225,000 & \$ 550,000 \\\text { Estimated costs to complete } & 450,000 & -0 \text { - } \\\text { Billings during the year } & 200,000 & 700,000 \\\text { Cash collections during the year } & 150,000 & 750,000\end{array}$

-Refer to Craft Construction. Assume Craft uses the percentage-of-completion method for revenue recognition. Compute the amount of gross profit for 2016 and 2017.

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Definitions:

Melanocytes

Cells located in the basal layer of the skin's epidermis that produce melanin, the pigment responsible for skin color.

Keratinocytes

The predominant cell type found in the epidermis, responsible for producing keratin, a key protein in the skin's protective barrier.

Melanin

A colorant created by melanocytes within the skin, hair, and eyes that is accountable for pigmentation and safeguards against ultraviolet radiation.

Epidermis

The top layer of skin that acts as a waterproof shield and is instrumental in the development of our skin tone.