At the end of year 2, the accounting records for a multi-year construction project indicate actual costs incurred to date of $ 3,200,000, and the most recent estimate of total costs of $ 9,500,000. Assuming the percentage-of completion method is used, to one decimal, at the end of year 2 the project is
A) 33.7% complete.
B) 31.2% complete.
C) 26.1% complete.
D) 25.2% complete.

Question

Quizplus · Accepted Answer

The percentage of completion is calculated by dividing the actual costs incurred to date by the most recent estimate of total costs: $3,200,000 / $9,500,000 = 0.3368, which rounds to 33.7%.

At the End of Year 2, the Accounting Records for a Multi-Year