Summary data for Benedict Construction Co.'s (BCC) Job 1227, which was completed in 2018, are presented below: Estimated cost to complete:
- Assuming BCC recognizes revenue over time according to percentage of completion for this contract, the gross profit recognized in 2017 would be (rounded to the nearest thousand):
A) $33,000.
B) $36,000.
C) $69,000.
D) $30,000.

Question

Summary data for Benedict Construction Co.'s (BCC) Job 1227, which was completed in 2018, are presented below:  Estimated cost to complete: 
- Assuming BCC recognizes revenue over time according to percentage of completion for this contract, the gross profit recognized in 2017 would be (rounded to the nearest thousand):
A) $33,000. 
B) $36,000. 
C) $69,000. 
D) $30,000.

Quizplus · Accepted Answer

$180,000/($180,000 + 200,000) = 47.37% complete
47.37% × ($450,000 - 180,000 - 200,000) = $33,159 or $33,000 rounded.

Summary Data for Benedict Construction Co