A Project Was Correctly Accounted for Under the Percentage-Of-Completion Method

question 112

Multiple Choice

A project was correctly accounted for under the percentage-of-completion method. At the end of the project, the Construction-in-Process account includes total debits and credits of $ 3,500,000. Assuming that total gross profit of $ 1,200,000 was recognized throughout the contract, total construction costs were

• A) $ 4,600,000.
• B) $ 3,500,000.
• C) $ 2,300,000.
• D) $ 2,100,000.

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Definitions:

Leukemia

A kind of cancer targeting the blood and bone marrow, marked by an excessive creation of atypical white blood cells.

Digestive

Relating to the process by which the body breaks down food into absorbable nutrients.

Stenotic

Relating to or characterized by the narrowing or constriction of a bodily passage or opening.

Infarction

Infiltration of foreign particles; material in a vessel causing coagulation and interference with circulation.