Green Construction Co. has consistently used the percentage-of-completion method

Question

Green Construction Co. has consistently used the percentage-of-completion method of recognizing revenue. During 2010, Green entered into a fixed-price contract to construct an office building for $12,000,000. Information relating to the contract is as follows: 2010 2011
percentage of compeltion 15% 45%
estimated total cost at completion 9,000,000 9,600,000
gross profit recognized (cumulative) 600,000 1,440,000

Contract costs incurred during 2011 were
(a) 2,970,000
(b) 3,150,000
(c) 4,320,000
(d) 2,880,000

Explanation / Answer

(b) 3,150,000

Related Questions

Navigate

• Browse (All)
• Browse G
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.