Question

Eilert Construction Company had a contract starting April 2018, to construct a $42,000,000 building that is expected to be completed in September 2019, at an estimated cost of $38,500,000. At the end of 2018, the costs to date were $17,710,000 and the estimated total costs to complete had not changed. The progress billings during 2018 were $8,400,000 and the cash collected during 2018 was $5,600,000. Eilert uses the percentage-of-completion method. [ What makes-up Construction in Process

Answer 1

Answer:

$20,790,000

Explanation:

Since the estimated total costs to complete had not change, the Construction is Process can be estimated as follows:

Construction in Process = Estimated total completion cost - Total costs of completion to date = $38,500,000 - $17,710,000 = $20,790,000