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
Correct Answer:
Verified
Q54: Which of the following statements is correct
Q63: Which statement best explains the completed contract
Q73: Tyco Ltd entered into a contract to
Q73: Which statement about the percentage of completion
Q74: Nova Construction Company (NCC)entered into a contract
Q74: Which statement best explains the percentage of
Q75: Explain how a company records revenue and
Q76: Nichols Construction Company (NCC)entered into a contract
Q82: Assume the following facts for a construction
Q83: Southtel is a builder of large digital
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents