Oriole Construction Company had a contract starting April 2018, to construct a $

Question

Oriole Construction Company had a contract starting April 2018, to construct a $23100000 building that is expected to be completed in September 2020, at an estimated cost of $21100000. At the end of 2018, the costs to date were $7807000 and the estimated total costs to complete had not changed. The progress billings during 2018 were $390000 and the cash collected during 2018 was 3110000. Oriole uses the percentage-of-completion method.

At December 31, 2018 Oriole would report Construction in Process in the amount of:

Explanation / Answer

Total Contract Price 23100000 Total estimated costs 21100000 Profit 2000000 Profit % 9.4787% Construction in Process amount = 7807000+(7807000*9.7487%)=$8547000 Option 3 is correct

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