Layton Construction Company has consistently used the percentage-of completion method of recognizing income. During 2011, Layton entered into a fixed-price contract to construct an office building for $10,000,000. Information relating to the contract is as follows:

Contract costs incurred during 2012 were
A) $3,200,000.
B) $3,300,000.
C) $3,500,000.
D) $4,800,000.

Question

Layton Construction Company has consistently used the percentage-of completion method of recognizing income. During 2011, Layton entered into a fixed-price contract to construct an office building for $10,000,000. Information relating to the contract is as follows:

Contract costs incurred during 2012 were

Contract costs incurred during 2012 were
A) $3,200,000. 
B) $3,300,000. 
C) $3,500,000. 
D) $4,800,000.

Quizplus · Accepted Answer

The Answer of Layton Construction Company has consistently used the percentage-of completion method of recognizing income. During 2011, Layton entered into a fixed-price contract to construct an office building for $10,000,000. Information relating to the contract is as follows:

Contract costs incurred during 2012 were
A) $3,200,000. 
B) $3,300,000. 
C) $3,500,000. 
D) $4,800,000.

Layton Construction Company Has Consistently Used the Percentage-Of Completion Method