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| Teaching Since: | May 2017 |
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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
The Marmon Car and Foundry Company was working on a contract calling for 210 railway cars, all of the same type. The price on these cars was fixed in the contract at $21,000 each. On December 31,1990, you find that the company had incurred costs of $2,700,000 on this contract, that 160 cars had been delivered to the purchaser, that 25 were in the process of construction, and 25 were yet to be built. The 25 cars in process were estimated by management to be about 80 percent complete. All costs were charged to a single work order calling for the construction of 210 cars. At what value should the 160 cars bw costed in the statement of income?
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