Sunshine Contractors Started a Contract in January 2017 to Build

Sunshine Contractors started a contract in January 2017 to build a bridge at a fixed price of $14 million.The bridge was to be completed by October 2019.Total cumulative costs incurred by the end of December 2017 and 2018 were $2 million and $6 million,respectively.Sunshine is unable to estimate the total costs of the project prior to completion.Final costs at the end of the project totaled $11 million.How much cost of sales will Sunshine report in 2019?

A) $3,000,000
B) $5,000,000
C) $8,000,000
D) $11,000,000

Correct Answer:

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