Assume that Sanchez Corp. has agreed to construct a new playground for Surrey County for $2,450,000. Construction of the new playground will begin on March 17, 2019, and is expected to be completed in August 2020. At the signing of the contract, Sanchez Corp. estimates that it will cost $1,750,000 to build the playground.

At the end of 2019 Sanchez provided the following information about the project:

	Costs incurred	Estimated costs
Year	to date	remaining
2019	$1,200,000	$600,000

If Sanchez uses the percentage of completion to recognize revenue on the long-term contract, how much gross margin should Sanchez recognize in 2019?

At the end of 2019 Sanchez provided the following information about the project:

	Costs incurred	Estimated costs
Year	to date	remaining
2019	$1,200,000	$600,000

What percentage is the Sanchez Corp complete?

Answer rating: 100% (QA)

Answer Percentage Completion 12000... View the full answer