Use the following information for questions. On April 1, Harmonica Corp.consigned 50 handcrafted benches to Organ Co.Harmonica's cost was $350 per bench.Total freight costs were $700, which were paid by Organ.On August 1, Harmonica received a cheque for $14,100 from Organ which included the following information: Revenue Recognition 6 - 21
-Flute Construction Corp.has consistently used the percentage-of-completion method. During 2014, Flute entered into a fixed-price contract to construct an office building for $6,000,000.Information relating to the contract is as follows: Under the earnings approach, contract costs incurred during 2015 were
A)$1,440,000.
B)$1,485,000.
C)$1,575,000.
D)$2,160,000.

Question

Use the following information for questions. On April 1, Harmonica Corp.consigned 50 handcrafted benches to Organ Co.Harmonica's cost was $350 per bench.Total freight costs were $700, which were paid by Organ.On August 1, Harmonica received a cheque for $14,100 from Organ which included the following information:  Revenue Recognition 6 - 21 
-Flute Construction Corp.has consistently used the percentage-of-completion method. During 2014, Flute entered into a fixed-price contract to construct an office building for $6,000,000.Information relating to the contract is as follows:  Under the earnings approach, contract costs incurred during 2015 were
A)$1,440,000. 
B)$1,485,000. 
C)$1,575,000. 
D)$2,160,000.

Quizplus · Accepted Answer

The Answer of Use the following information for questions. On April 1, Harmonica Corp.consigned 50 handcrafted benches to Organ Co.Harmonica's cost was $350 per bench.Total freight costs were $700, which were paid by Organ.On August 1, Harmonica received a cheque for $14,100 from Organ which included the following information:  Revenue Recognition 6 - 21 
-Flute Construction Corp.has consistently used the percentage-of-completion method. During 2014, Flute entered into a fixed-price contract to construct an office building for $6,000,000.Information relating to the contract is as follows:  Under the earnings approach, contract costs incurred during 2015 were
A)$1,440,000. 
B)$1,485,000. 
C)$1,575,000. 
D)$2,160,000.

Use the Following Information for Questions