Percentage of Completion Method Completed Contract CPA exam Simulation

[@michelledthomas155]

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[@AccountingLectures]

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[@michelledthomas155]

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[@sullyd.225]

This is already confusing. In your example you are adding cost incurred to date to estimated cost to complete to get 27.29% completed. However, other sources give examples that do not add the two together. The cost incurred to date is divided by estimated cost to complete. Following the other sources formula in your example i would divide 563k by 1.5M to get 37.53% complete. Which is correct?

[@andvari1056]

In the other examples, are you sure it’s not total cost as opposed to estimated cost to complete? Because the formula is= cost to date/total cost. You just have to figure out total cost. Sometimes it’s given and sometimes you have to re-calculate it like here. Hope this helps