Use the Following Information for Questions 76 and 77

question 42

Multiple Choice

Use the following information for questions 76 and 77.
Gomez, Inc. began work in 2014 on contract #3814, which provided for a contract price of $14,400,000. Other details follow:
-Assume that Gomez uses the percentage-of-completion method of accounting. The portion of the total gross profit to be recognized as income in 2014 is

• A) $900,000.
• B) $1,200,000.
• C) $3,600,000.
• D) $4,800,000.

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Definitions:

Process Characteristic

A feature or attribute that can be measured or quantified to assess the performance of a process.

Normal Distribution

A type of continuous probability distribution for a real-valued random variable, symmetrical and described by its mean and standard deviation.

Capability Index

A statistical measure that quantifies the ability of a process to produce output within specified limits.

Compressive Strength

The capacity of a material or structure to withstand loads that reduce the size, expressed typically in pounds per square inch (psi) or mega pascals (MPa).