Screw Loose Budget Builders received a contract to build a m…
Screw Loose Budget Builders received a contract to build a manufacturing facility for $12 million. The total cost to build can be reasonably estimated at $5.5 million, thus the firm uses the percentage of completion method. The actual costs incurred during each year of construction are as follows: Year 1 Year 2 Year 3 Year 4 Year 5 Costs incurred $ 2,750,000 $ 1,100,000 $ 550,000 $ 400,000 $ 700,000 How much profit will the firm record in year 5?