Construction Contracts: Measuring Revenues, Expenses and COGS
When the construction in progress is completed, related long-term asset account is debited and CIP account is credited. Inventory asset accounts are divided into a balance sheet component known as WIP. As a result, these expenses are transferred to the finished goods account and ultimately the cost of sales. Accounting for construction in progress when …
Construction Contracts: Measuring Revenues, Expenses and COGS Leia mais »