Question
1. Summary data for Benedict Construction Co.'s (BCC) Job 1227, which was completed in 2022, are presented below: Contract price $ 450,000 Contract cost: 2021
1. Summary data for Benedict Construction Co.'s (BCC) Job 1227, which was completed in 2022, are presented below:
| Contract price |
| $ | 450,000 |
|
| Contract cost: | 2021 |
| (180,000 | ) |
|
| 2022 |
| (195,000 | ) |
| Gross profit: |
|
| 75,000 |
|
Estimated cost to complete on the last day of each fiscal year is given below:
| 12/31/2020 | $ | 180,000 |
|
| 12/31/2021 |
| 0 |
|
What is the amount of gross profit that the firm recognizes for the year of 2021?
a. $42,000
b. $6,000
c. $45,000
d. $39,000
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Fundamentals Of Quality Auditing
Authors: B. Scott Parsowith
1st Edition
0873892402, 978-0873892407
