Joyce Went to Lowes to Buy Carpeting

question 37

Multiple Choice

Joyce went to Lowes to buy carpeting. She will need 88.4 sq. yards for downstairs, 15.1 sq. yards for the halls, and 177.18 sq. yards for the upstairs bedrooms. She chose a commercial carpet that costs $18.11 per sq. yard. Joyce ordered foam padding at $3.25 per sq. yard. The installers quoted Joyce a labor cost of $4.25 per sq. yard for installation. What will the total job cost Joyce?

• A)$8,871.21
• B)$8,781.21
• C)$7,188.21
• D)$7,88.21
• E)$6700.21

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Definitions:

Revenue Recognition Criteria

The set of guidelines that determines the specific conditions under which revenue is recognized in the accounting period.

Fixed-Price Contract

A contract where the service or product delivery price is agreed upon before the work begins, regardless of the actual costs incurred during the project.

IFRS

International Financial Reporting Standards, a set of accounting rules followed by companies internationally to maintain consistency in financial reporting.

Completed Contract Method

An accounting method that recognizes revenue and expenses of a long-term project only when the project is completed, often used in construction accounting.