Eilert Construction Company had a contract starting April 2011, to construct a $15,000,000 building that is expected to be completed in September 2012, at an estimated cost of $13,750,000. At the end of 2011, the costs to date were $6,325,000 and the estimated total costs to complete had not changed. The progress billings during 2011 were $3,000,000 and the cash collected during 2011 was $2,000,000. Eilert uses the percentage-of-completion method.
At December 31, 2011, Eilert would report Construction in Process in the amount of:
a) $5,900,000.
b) $6,325,000.
c) $575,000.
d) $6,900,000.