In 2018, Cupid Construction Co. (CCC) began work on a two-year fixed price contract project. CCC recognizes revenue over time according to percentage of completion for this contract, and provides the following information (dollars in millions):
-What are CCC's estimated remaining construction costs on the project at the end of 2018?
A) $90 million.
B) $135 million.
C) $225 million.
D) $0.

Question

In 2018, Cupid Construction Co. (CCC) began work on a two-year fixed price contract project. CCC recognizes revenue over time according to percentage of completion for this contract, and provides the following information (dollars in millions):  
-What are CCC's estimated remaining construction costs on the project at the end of 2018?
A) $90 million. 
B) $135 million. 
C) $225 million. 
D) $0.

Quizplus · Accepted Answer

Percentage completion to date = 60 % = Actual costs to date of $135 million / Total estimated project costs of $X. Solve for X. Estimated total costs = $225 million; therefore, Estimated remaining costs of construction = $225 million - $135 million = $90 million.