1. Northstar Construction is in the middle of its largest project ever. Some project data as of December 31, 2014 is displayed below. Using data provided, calculate gross profit earned to date at December 31, 2014.

Contract Price: $2,115,000.00

Costs to date: $916,491.00

Total Estimated Costs: $1,522,800.00

A. $395,507.97

B. Unable to calculate. Fixed and variable overhead is not available.

C. $296,100.00

D. Unable to calculate. Percent complete is not available.

E. $356,504.40

2. ABC Construction, Inc.s current project has a contract value of $1,109,655.00. Actual costs to date are $711,685.00 and total billed to customer is currently $675,000.00. Estimated cost at completion is $898,820.00 At this point, is project overbilled, underbilled or billed exactly as it should be?

A. Overbilled

B. Underbilled

C. Unable to calculate. Retainage information is unavailable.

D. Unable to calculate. Billed profit information is needed to complete calculation.

E. Project is billed exactly as it should be.

3. ABC Construction, Inc.s current project has a contract value of $1,109,655. Actual costs to date are $711,685 and total billed to customer is currently $675,000. Estimated cost at completion is $898,820. If project is overbilled or underbilled, by how much?

A. Overbilled by 166,981.32

B. Underbilled by 166,981.32

C. Overbilled by 203,666.32

D. Underbilled by 203,666.32

E. Due to missing information, determination is not possible.

F. Project is neither underbilled or overbilled. Billing is exactly as it should be.

4. Income recognized on a current basis, better matching of costs to revenues, overhead, and profits to individual projects, and preferred tracking of construction companys financial status are characteristics of which method of accounting.

A. Cash

B. Completed contract

C. Creative under the table.

D. Accrual

E. Percentage of completion