WestCoast Co

question 22

Essay

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.
$$\begin{array} { | r | r | r | r | } \hline & 2020 & 2021 & 2022 \\\hline \text { Revenue } & & & \\\hline \text { Cost of sales } & & & \\\hline \text { Gross profit } & & & \\\hline\end{array}$$

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Definitions:

Mineralocorticoids

A class of steroids, including aldosterone, that are produced by the adrenal cortex and regulate electrolyte and water balance.

Insulin Secretion

The method through which insulin, a hormone that assists in controlling blood sugar levels, is discharged by the pancreas.

Skeletal Muscle

A type of muscle tissue that is attached to bones through tendons and is involved in the generation of force to move the body.

ATP Levels

The concentration of Adenosine Triphosphate in cells, which serves as a primary energy carrier in all living organisms.