Explore BrainMass

Explore BrainMass

    Indiana Co: Percentage-of-Completion Method 2011

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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.

    © BrainMass Inc. brainmass.com June 4, 2020, 2:58 am ad1c9bdddf
    https://brainmass.com/business/percentage-of-completion-method/indiana-co-percentage-completion-method-491465

    Solution Summary

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

    $2.19

    ADVERTISEMENT