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Question - Strong Construction Company uses a percentage of completion method in accounting for long term projects. The following information related to a project that was started last year at a contract price of P20M.
2019
Gross profit or (loss) (500,000)
Cost incurred 4,500,000
Engr. Tommy wants to know how effective the company operated during the 1st year of this project and because the information is not complete, has asked this question.
Required - What was the percentage of completion in 2019?
a. 22.5%
b. 20%
c. 25%
d. Can't be determined
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