MD Construction entered into a contract beginning January 1, 2010 to build a parkingcomplex. It has been estimated that the complex will cost P600,000 and will take threeyears to construct. The complex will be billed at P900,000. The following data pertain tothe construction period.201020112012Cost to dateP270,000 P420,000 P600,000Estimated cost to completeProgress billings to dateCash collected to date330,000270,000180,000-0-550,000900,000240,000500,000900,00During 2010, costs incurred include P30,000o standard materials stored at the site to beused in 2012 to complete the project. Using percentage-of-completion method,compute the gross profit that should be recognized in 2011:

Answered: Image /qna-images/answer/13e88579-e55c-4253-b069-b3d327616d71.jpg

MD Construction entered into a contract beginning January 1, 2010 to build a parking complex. It has been estimated that the complex will cost P600,000 and will take three years to construct. The complex will be billed at P900,000. The following data pertain to the construction period. 2010 2011 2012 Cost to date Estimated cost to complete Progress billings to date P270,000 P420,000 P600,000 330,000 180,000 -0- 270,000 550,000 900,000 Cash collected to date 240,000 500,000 900,00 During 2010, costs incurred include P30,000 standard materials stored at the site to be used in 2012 to complete the project. Using percentage-of-completion method, compute the gross profit that should be recognized in 2011:

MD Construction entered into a contract beginning January 1, 2010 to build a parking complex. It has been estimated that the complex will cost P600,000 and will take three years to construct. The complex will be billed at P900,000. The following data pertain to the construction period. 2010 2011 2012 Cost to date Estimated cost to complete Progress billings to date P270,000 P420,000 P600,000 330,000 180,000 -0- 270,000 550,000 900,000 Cash collected to date 240,000 500,000 900,00 During 2010, costs incurred include P30,000 standard materials stored at the site to be used in 2012 to complete the project. Using percentage-of-completion method, compute the gross profit that should be recognized in 2011:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

How much is the Gross Profit/Loss Realized in 2018?
Please do not give image format
Please help me
A medium size manufacturing company has a budget of $200,000 to invest on five different capital projects. Each has a six year life. Additional financial data for the five project opportunities are given below. Initial Cost $50K EUAB OD.A. E OCAB A OC. B. D OA.C.E 12,160 Determine which projects should be funded. B $80K 18,368 C $30K 7,932 D $40K 8,652 E $60K 13,374
Alpha Bridge Project SUMMARY OF BRIDGE REPAIR COSTS Year Activity Cost GH¢ 2005 Inspection and top chord repairs 44,800 2007 Inspection and erosion protection 19,800 2009 Inspection 1,800 2011 Inspection and misc. steel repairs 31,800 2013 Inspection 1,800 2015 Inspection 1,800 2017 Inspection and repair abutments 65,000 2019 Inspection 1,800 Calculate the present value of the costs for the above project cash flow with a discounting rate of 5%
Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,850,000. The project was begun in 2023 and completed in 2024. Cost and other data are presented below: 2023 2024 Costs incurred during the year $ 435,000 $ 1,150,000 Estimated costs to complete 1,015,000 0 Billings during the year 425,000 1,425,000 Cash collections during the year 325,000 1,525,000 Assume that Beavis recognizes revenue on this contract over time according to percentage of completion. Required: Compute the amount of gross profit recognized during 2023 and 2024.
Sandhill Communications contracted to set up a call center for the City of Phoenix. Under the terms of the contract, Sandhill Communications will design and set-up a call center with the following costs: Design of call center $18000 Computers, servers, telephone equipment $510000 Software $150000 Installation and testing of equipment $26000 Selling commission $46000 Annual service contract $80000 In addition, Sandhill Communications will maintain and service the equipment and software to ensure smooth operations of the call center for an annual fee of $160000. Ownership of equipment installed remains with the City of Phoenix. The contract costs that should be capitalized is $678000. $830000. $660000. $750000.
K A highway bridge is being considered for replacement. The new bridge would cost $X and would last for 24 years. Annual maintenance costs for the new bridge are estimated to be $27,000. People will be charged a toll of $0.22 per car to use the new bridge. Annual car traffic is estimated at 360,000 cars. The cost of collecting the toll consists of annual salaries for six collectors at $9,000 per collector. The existing bridge can be refurbished for $1,400,000 and would need to be replaced in 24 years. There would be additional refurbishing costs of $80,000 every five years and regular annual maintenance costs of $17,000 for the existing bridge. There would be no toll to use the refurbished bridge. If MARR is 10% per year, what is the maximum acceptable cost (X) of the new bridge? Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10per year. Choose the correct answer below. .... A. The maximum acceptable cost of the new bridge is $1,668,576.…
Divya
BnD Construction Co. successfully tendered for a 3-year contract to erect some warehouse facilities in Gros Islet. The following information has been provided. Contract price - $25 000 000 2021 2022 2023 Cost during year $ 4 000 000 $8 000 000 $8 100 000 Estimated cost to complete 16 000 000 8 050 000 0 Progress billings to date 4 500 000 11 500 000 25 000 000 Cash collected to date 4 200 000 11 000 000 25 000 000 i. Complete the following Workings Schedule. Do not enter negative values in the schedule. 2021 2022 2023 Cost to date $Answer 29 Question 3 $Answer 30 Question 3 $Answer 31 Question 3 Estimated cost to complete $Answer 32 Question 3 $Answer 33 Question 3 $Answer 34 Question 3 Total estimated cost $Answer 35 Question 3 $Answer 36 Question 3 $Answer 37 Question 3 Percentage complete (Round to nearest whole number) Answer 38 Question 3% Answer 39 Question 3%…
Instructions An evaluation is needed for a sock production project that requires an initial investment of $50,000,000°, of which 80% corresponds to depreciable fixed assets, and 20% to working capital. The unit production cost is $10,000°°, and a unit sale value of $13,500°° is estimated. The market study revealed a potential demand of 20,000 units for the first year. The fixed assets are depreciated straight-line over a useful life of 10 years. Operational expenses are estimated at $4,000,000° for the first year. The fixed costs amount to $10,000,000° for the first year. The following increments are estimated: sales increase by 2% annually, variable unit cost by 3% annually, unit sale price by 3% annually, operational expenses by 6% annually, and fixed costs by 5% annually. The project has a useful life of 5 years. 1. Build the project's cash flow. 2. Calculate the Internal Rate of Return (IRR) and determine if the project is profitable or not, considering an opportunity rate of…
Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,810,000. The project was begun in 2023 and completed in 2024. Cost and other data are presented below: 2023 2024 Costs incurred during the year $ 447,000 $ 1,110,000 Estimated costs to complete 1,043,000 0 Billings during the year 405,000 1,405,000 Cash collections during the year 305,000 1,505,000 Assume that Beavis recognizes revenue on this contract over time according to percentage of completion. Required: Prepare all journal entries to record costs, billings, collections, and profit recognition. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet