Use the following information for questions.The contract calls for progress billings and payments of $620,000 each quarter.The total contract price is $7,440,000 and Seasons estimates total costs of $7,100,000.Seasons estimates that the building will take 3 years to complete, and commences construction on January 2, 2010.
-At December 31, 2011, Seasons Construction estimates that it is 75% complete with the building; however, the estimate of total costs to be incurred has risen to $7,200,000 due to unanticipated price increases.What is the total amount of Construction Expenses that Seasons will recognize for the year ended December 31, 2011?

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The Answer of Use the following information for questions.The contract calls for progress billings and payments of $620,000 each quarter.The total contract price is $7,440,000 and Seasons estimates total costs of $7,100,000.Seasons estimates that the building will take 3 years to complete, and commences construction on January 2, 2010.
-At December 31, 2011, Seasons Construction estimates that it is 75% complete with the building; however, the estimate of total costs to be incurred has risen to $7,200,000 due to unanticipated price increases.What is the total amount of Construction Expenses that Seasons will recognize for the year ended December 31, 2011?

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