You are currently working as a planner in a construction company. The company is currently running 4 different construction works. The monthly planned value of work done for each project is according to the schedule as shown in Table 2. Table 2: The Planned Value of Work Done Schedule Jan Feb March Project A Project B Project C Project D 60,000 100,000 80,000 120,000 100,000 80,000 80,000 120,000 120,000 120,000 70,000 100,000 April 120,000 140,000 90,000 120,000 May 200,000 140,000 100,000 150,000 Based on the data obtained from each project, you have found out the value of work done on the 31st of March, which is shown in Table 3 below.

You are currently working as a planner in a construction company. The company is currently running 4 different construction works. The monthly planned value of work done for each project is according to the schedule as shown in Table 2. Table 2: The Planned Value of Work Done Schedule Jan Feb March Project A Project B Project C Project D 60,000 100,000 80,000 120,000 100,000 80,000 80,000 120,000 120,000 120,000 70,000 100,000 April 120,000 140,000 90,000 120,000 May 200,000 140,000 100,000 150,000 Based on the data obtained from each project, you have found out the value of work done on the 31st of March, which is shown in Table 3 below.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

Calculate the actual value of work done and the total actual profit contribution from all the projects as of the 31st of March.

You are currently working as a planner in a construction company. The
company is currently running 4 different construction works. The monthly
planned value of work done for each project is according to the schedule as
shown in Table 2.
Table 2: The Planned Value of Work Done Schedule
March
120,000
120,000
70,000
100,000
April
120,000
140,000
90,000
120,000
May
200,000
140,000
100,000
150,000
Jan
Feb
Project A
Project B
Project C
Project D
60,000
100,000
80,000
120,000
100,000
80,000
80,000
120,000
Based on the data obtained from each project, you have found out the value of
work done on the 31st of March, which is shown in Table 3 below.
Table 3: The Actual Value of Work Done and Direct Cost Incurred as of the
31st of March
Project
Actual Value of Work Direct Cost Incurred
Done
300,000
250,000
250,000
280,000
A
220,000
180,000
200,000
240,000
B
C
D
Each project is supposed to contribute 10% profit and 8% overhead to the
company. You are requested to present to the company the turnover as of the
31st of March. Prepare your answer by answering the following questions.

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