Sunshine Contractors started a contract in January 2017 to build a bridge at a fixed price of $14 million.The bridge was to be completed by October 2019.Total cumulative costs incurred by the end of December 2017 and 2018 were $2 million and $6 million,respectively.Sunshine is unable to estimate the total costs of the project prior to completion.Final costs at the end of the project totaled $11 million.How much cost of sales will Sunshine report in 2019?
A)$3,000,000
B)$5,000,000
C)$8,000,000
D)$11,000,000

Question

Quizplus · Accepted Answer

B)(since Lagory cannot estimate total costs,use cost recovery method)
 11ea7cc7_619d_d0e0_928c_594ed94c5d18_TB1320_00

Sunshine Contractors Started a Contract in January 2017 to Build