What is total cost occured

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Problem 1: On April 1, 2019, Dougherty Inc. entered into a cost-plus-fixed-fee contract to construct an electric generator for Altom Corporation. At the contract date, Dougherty estimated that it would take 2 years to complete the project at a cost of $2,000,000. The fixed fee stipulated in the contract is $450,000. Dougherty appropriately accounts for this contract under the percentage-of-completion method. During 2019, Dougherty incurred costs of $800,000 related to the project. The estimated cost at December 31, 2019, to complete the contract is $1,200,000. Altom was billed $600,000 under the contract. What is total cost occured?

a) $2,000,000

b) $2,250,000

c) $2,450,000

d) $2,500,000

Reference no: EM132809279

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