Question: During year 1, Meriwether Construction Company started a construction job with a contract price of $ 3,000,000. The job was completed in year 2 and

During year 1, Meriwether Construction Company started a construction job with a contract price of $ 3,000,000. The job was completed in year 2 and the company uses the percentage of completion method. The following information is available for year 1 and year 2:

What amount of gross profit should Meriwether recognize for this job for year 2?
a. $ 250,000
b. $ 1,000,000
c. $ 350,000
d. $ 600,000

Year 1 Year 2 Cost incurred to date Estimated cost to complete Bilings to date Collections to date $ 500,000 $2,400,000 1,500,000 300,000 1,00.000 100,000 600,000

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Choice c is correct The total cost for the contract was 2400000 The contract price ... View full answer

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