Business FinancesQuestion 319 of 1632
A contractor's job is 30% complete. Total estimated job costs are $250,000 and the contract price is $320,000. Under the percentage-of-completion method, how much job cost should be recognized to date?
a.$96,000
b.$320,000
c.$75,000
d.$250,000
Explanation
Cost recognized = Total Estimated Costs × Percentage Complete = $250,000 × 30% = $75,000. The matching revenue would be $320,000 × 30% = $96,000.
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