Question
Summary data for Benedict Construction Co.'s (BCC) Job 1227, which was completed in 2013, are presented below: Bid price $450,000 Contract cost: 2012 (180,000) 2013
Summary data for Benedict Construction Co.'s (BCC) Job 1227, which was completed in 2013, are presented below:
| Bid price | $450,000 | ||
| Contract cost: | 2012 | (180,000) | |
| 2013 | (195,000) | ||
| Gross profit: | 75,000 | ||
| Estimated cost to complete: | |||
| 12/31/2012 | $200,000 | ||
| 12/31/2013 | 0 | ||
Assuming BCC used the completed contract method to recognize revenue, what would gross profit have been in 2012 and 2013 (rounded to the nearest thousand)?
| 2012 | 2013 | |
| a. | $36,000 | $39,000 |
| b. | $30,000 | $45,000 |
| c. | $70,000 | $5,000 |
| d. | $0 | $75,000 |
Choice A
Choice B
Choice C
Choice D
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
The Internal Auditing Handbook
Authors: K. H. Spencer Pickett
3rd Edition
0470518715, 978-0470518717
