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 2018 would be (rounded to the nearest thousand):
A) $6,000.
B) $39,000.
C) $42,000.
D) $45,000.

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 2018 would be (rounded to the nearest thousand):
A) $6,000. 
B) $39,000. 
C) $42,000. 
D) $45,000.

Quizplus · Accepted Answer

2018: Total profit = $450,000 - ($180,000 + 195,000) = $75,000 - 33,159 = $41,841 or $42,000 rounded.

Summary Data for Benedict Construction Co