Kerlo shipyard is building a fishing vessel for a shipowner; the obligation is satisfied over time and progress is measured using costs. Fixed price: 3,600,000. At the end of year 1, costs incurred are 1,000,000 out of total expected costs of 2,500,000. At the end of year 2, cumulative costs reach 2,160,000 and total expected costs are increased to 2,880,000 following a rise in steel prices. Determine the revenue for year 1 and for year 2.
- Fixed price
- 3,600,000
- Costs incurred at the end of year 1
- 1,000,000
- Total expected costs at the end of year 1
- 2,500,000
- Cumulative costs at the end of year 2
- 2,160,000
- Revised total expected costs at the end of year 2
- 2,880,000