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QUESTION
The Simpson Construction Company uses the percentage-of-completion method of accounting for long-term construction contracts. In 2005, Simpson began...
The Simpson Construction Company uses the percentage-of-completion
method of accounting for long-term construction contracts.
In 2005, Simpson
began work on a construction contract.
Information on this contract at the
end of 2005 is as follows
:
Cost incurred during the year
$1,500,000
Estimated cost to complete
6,000,000
Gross profit recognized in 2005
250,000
What is the contract price (total revenue) on this contract?
