Lake Construction Company uses the completed-contract method for long-term construction contracts. The information for a specific contract as of January 1, 2011, is shown below.

$600,000 of cost was incurred during 2011 and on December 31, 2011, the estimated remaining cost to complete was still $800,000. The correct balance for the Construction in Progress at December 31, 2011 is
A) $600,000.
B) $700,000.
C) $1,200,000.
D) $1,300,000.

Question

Lake Construction Company uses the completed-contract method for long-term construction contracts. The information for a specific contract as of January 1, 2011, is shown below.

$600,000 of cost was incurred during 2011 and on December 31, 2011, the estimated remaining cost to complete was still $800,000. The correct balance for the Construction in Progress at December 31, 2011 is
A) $600,000. 
B) $700,000. 
C) $1,200,000. 
D) $1,300,000.

Quizplus · Accepted Answer

The Answer of Lake Construction Company uses the completed-contract method for long-term construction contracts. The information for a specific contract as of January 1, 2011, is shown below.

$600,000 of cost was incurred during 2011 and on December 31, 2011, the estimated remaining cost to complete was still $800,000. The correct balance for the Construction in Progress at December 31, 2011 is
A) $600,000. 
B) $700,000. 
C) $1,200,000. 
D) $1,300,000.

Lake Construction Company Uses the Completed-Contract Method for Long-Term Construction