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    Indiana Co: Percentage-of-Completion Method 2011

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    Indiana Co. began a construction project in 2011 that will provide it $165 million when it is completed in 2013. During 2011, Indiana incurred $32 million of costs and estimates an additional $87 million of costs to complete the project. (Do not round your percentage calculated.)

    Using the percentage-of-completion method, Indiana:

    a. Recognized $78.00 million loss on the project in 2011.

    b. Recognized no gross profit or loss on the project in 2011.

    c. Recognized $32.00 million loss on the project in 2011.

    d. Recognized $12.37 million gross profit on the project in 2011.

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    Solution Summary

    Your tutorial is attached in excel showing the steps to work a percentage of completion method on long term contracts.