What the amount of construction costs incurred during 2008


Willingham Construction Company uses the percentage-of-completion method. During 2007, the company entered into a fixed-price contract to construct a building for Richman Company for $30,000,000. The following details pertain to the contract: Percentage of completion Estimated total cost of contract Gross profit recognized to date At December 31, 2007 25% $22,500,000 1,875,000 At December 31, 2008 60% $25,000,000 3,000,000 what the amount of construction costs incurred during 2008 was ?

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Accounting Basics: What the amount of construction costs incurred during 2008
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