Use the Following Information for Questions

question 20

Short Answer

Use the following information for questions.The contract calls for progress billings and payments of $620,000 each quarter.The total contract price is $7,440,000 and Seasons estimates total costs of $7,100,000.Seasons estimates that the building will take 3 years to complete, and commences construction on January 2, 2010.
-At December 31, 2010, Seasons estimates that it is 30% complete with the construction, based on costs incurred.What is the total amount of Revenue from Long-Term Contracts recognized for 2010 and what is the balance in the Accounts Receivable account assuming Cannon Cafe has not yet made its last quarterly payment?

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Definitions:

Value Stream Mapping

A lean management tool for analyzing the flow of materials and information currently required to bring a product or service to a consumer.

Time Function Mapping

A visual representation technique used in process improvement to analyze the flow of information or material through a process over time.

Supply Chain

The network of organizations involved in producing, delivering, and selling goods and services, from the acquisition of raw materials to the final consumer.

Crossover Point

The point at which two different options have equal costs or benefits, influencing a change in decision.