A Project Was Correctly Accounted for Under the Percentage-Of-Completion Method

Multiple Choice

A project was correctly accounted for under the percentage-of-completion method. At the end of the project, the Construction-in-Process account includes total debits and credits of $ 3,500,000. Assuming that total gross profit of $ 1,200,000 was recognized throughout the contract, total construction costs were

A) $ 4,600,000.
B) $ 3,500,000.
C) $ 2,300,000.
D) $ 2,100,000.