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Fulton Construction is a general contractor for large construction projects. The budget costs and the time to reach a particular percentage of completion (in months) follows. Also shown are the actual results (cost and months) up to the latest report, which was at the end of month 19. Percentage Complete 08 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70%. 75% 80% 85% 90% 95% 100% Cost ($000) Budget 0 2,236 3,162 3,873 4,472 5,000 5,477 5,916 6,325 6,708 7,071 7,416 7,746 8,062 8,367 8,660 8,944 9,220 9,487 9,747 10,000 Actual 0 774 1,545 2,308 3,061 3,799 4,520 5,221 5,899 6,553 7,182 7,783 8,356 8,900 9,416 9,902 10,361 10,791 11, 194 Months to Reach Budget Actual . 0 0 1 1 2 3 3 4 5 6 7 8 9 10 12 13 14 16 17 19 20 0 4 6 8 9 10 11 12 13 13 14 15 15 16 17 18 18 19 Required: a. At this time, what is the current cost over- (under-) run on the project? Note: Enter your answer in dollars and not in thousands of dollars. b. At this time, by how far ahead or behind schedule is the project in terms of percentage of completion?

Fulton Construction is a general contractor for large construction projects. The budget costs and the time to reach a particular percentage of completion (in months) follows. Also shown are the actual results (cost and months) up to the latest report, which was at the end of month 19. Percentage Complete 08 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70%. 75% 80% 85% 90% 95% 100% Cost ($000) Budget 0 2,236 3,162 3,873 4,472 5,000 5,477 5,916 6,325 6,708 7,071 7,416 7,746 8,062 8,367 8,660 8,944 9,220 9,487 9,747 10,000 Actual 0 774 1,545 2,308 3,061 3,799 4,520 5,221 5,899 6,553 7,182 7,783 8,356 8,900 9,416 9,902 10,361 10,791 11, 194 Months to Reach Budget Actual . 0 0 1 1 2 3 3 4 5 6 7 8 9 10 12 13 14 16 17 19 20 0 4 6 8 9 10 11 12 13 13 14 15 15 16 17 18 18 19 Required: a. At this time, what is the current cost over- (under-) run on the project? Note: Enter your answer in dollars and not in thousands of dollars. b. At this time, by how far ahead or behind schedule is the project in terms of percentage of completion?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Fulton Construction is a general contractor for large construction projects. The budget costs and the time to reach a particular percentage of completion (in months) follows. Also shown are the actual results (cost and months) up to the latest report, which was at the end of month 19. Percentage Complete 08 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70%- 75% 80% 85% 90% 95% 100% Cost ($000) Budget 0 2,236 3,162 3,873 4,472 5,000 5,477 5,916 6,325 6,708 7,071 7,416 7,746 8,062 8,367 8,660 8,944 9,220 9,487 9,747 10,000 Actual a. Current cost b. Percentage of completion 0 774 1,545 2,308 3,061 3,799 4,520 5,221 5,899 6,553 7,182 7,783 8,356 8,900 9,416 9,902 10,361 10,791 11,194 Months to Reach Budget Actual 0 0 1 % 1 2 3 3 4 5 6 7 8 9 10 12 13 14 16 17 19 20 0 4 6 8 9 10 11 12 13. 13. 14 15 15 16 17 17 18 Required: a. At this time, what is the current cost over- (under-) run on the project? Note: Enter your answer in dollars and not in thousands of dollars. b. At this time, by how far ahead or behind schedule is the project in terms of percentage of completion? 18 19
Transcribed Image Text:Fulton Construction is a general contractor for large construction projects. The budget costs and the time to reach a particular percentage of completion (in months) follows. Also shown are the actual results (cost and months) up to the latest report, which was at the end of month 19. Percentage Complete 08 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70%- 75% 80% 85% 90% 95% 100% Cost ($000) Budget 0 2,236 3,162 3,873 4,472 5,000 5,477 5,916 6,325 6,708 7,071 7,416 7,746 8,062 8,367 8,660 8,944 9,220 9,487 9,747 10,000 Actual a. Current cost b. Percentage of completion 0 774 1,545 2,308 3,061 3,799 4,520 5,221 5,899 6,553 7,182 7,783 8,356 8,900 9,416 9,902 10,361 10,791 11,194 Months to Reach Budget Actual 0 0 1 % 1 2 3 3 4 5 6 7 8 9 10 12 13 14 16 17 19 20 0 4 6 8 9 10 11 12 13. 13. 14 15 15 16 17 17 18 Required: a. At this time, what is the current cost over- (under-) run on the project? Note: Enter your answer in dollars and not in thousands of dollars. b. At this time, by how far ahead or behind schedule is the project in terms of percentage of completion? 18 19
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