Calculate the percentage of completion for each

Assignment Help Cost Accounting
Reference no: EM132966810

Question - XYZ Ltd signs a contract on 30 June 2015, agreeing to build a bridge for ABC Limited at a contract price of $40 million. XYZ Ltd estimates that construction costs will be as follows:

Year Ending Cost

30 June 2016 $10,000,000

30 June 2017 $16,000,000

30 June 2018 $6,000,000

Total - $32,000,000

The contract provides that ABC will make payments on 30 June of each year as follows:

2016 $8,000,000

2017 $20,000,000

2018 $12,000,000

TOTAL - $40,000,000

XYZ now estimates at the beginning of the 2017 financial year that construction costs will be as follows:

Year Ending Cost

30 June 2016 $10,000,000

30 June 2017 $21,000,000

30 June 2018 $15,000,000

TOTAL - $46,000,000

Required -

a) Calculate the Percentage of completion for each of the three years.

b) Calculate the Revenue to be recognised in each of the three years.

c) Calculate the Gross profit/loss to be recognised in each of the three years.

Reference no: EM132966810

Questions Cloud

Calculate the present value of this perpetuity : A perpetuity has an annual payment of 6 at time 2, 7 at time 3, 8 at time 4, etc. At an annual effective rate of 7%, calculate present value of this perpetuity
Journalise the transactions in the relevant special journals : Journalise the transactions in the relevant special journals. Ignore narrations in the General Journal. Total the special journals.
Calculate the times interest earned for the year ended : Earnings before interest and taxes (operating income) $90,000. Calculate the times interest earned for the year ended December 31, 2019
Explain what is meant by beta : Explain what is meant by beta? Include in your explanation a) the implications when a stock has a beta of less than one and more than one
Calculate the percentage of completion for each : XYZ Ltd signs a contract on 30 June 2015, agreeing to build a bridge for ABC Limited at a contract price of $40 million. Calculate the Percentage of completion
Which has the greater value : Which has the greater value if the current rate of return is 4.5% compounded monthly and you expect to live for at least 20 years?
How is diversity an ethical matter : -In your considered view, how is diversity an ethical matter? How does diversity contribute to national power and purpose?
What is the approach to growing the business : What is their approach to growing the business? How would you advise your company based on what you have learned this week in terms of self-supporting growth?
What pro financial statements should include : What Pro's 2021 financial statements should include? Pro Footballs acquired a patent in 2018 at a cost of $150 million and amortizes the patent

Reviews

Write a Review

Cost Accounting Questions & Answers

  Compute the estimated total cost of each job

Using each of the methods, compute the estimated total cost of each job at the end of the month. Determine the under- or overapplied factory overhead, in total, at the end o fthe month under each of the methods.

  Derive the cost equation for selling expenses

Derive the cost equation for selling expenses. (Hint: y ¼ a þ bx þ cy.) Assume that Seattle sells 50,000 units during the period. Budgeted sales totaled 65,000 units at a budgeted sales price of $5.50 per unit.

  How find approximate internal rate of return of each project

How do find approximate internal rate of return of each project. Which one should be adopted based on the internal rate of return approach?

  Create a variable costing income statement with two columns

Prepare a variable costing income statement with two columns - one should show the results if 25,000 units are produced, and the second column should show the results if 35,000 units are produced.

  What are some of the ethical questions

What are some of the ethical questions that you will ask to yourself in light of the fundamental principles of professional code of conduct for accountants

  Discuss the implementation of budgetary control systems

Discuss this statement in relation to the design and implementation of budgetary control systems.Motivation is the over-riding consideration

  What are the benefits to a hotel manager

What are the benefits to a hotel manager who purchases software from a vendor in compliance with HITIS?

  What is the annual cash interest payment

What is the maturity value, what is the annual cash interest payment and what are the proceeds the company receives upon issuance of the bond?

  Compute the annual interest rate

Compute the annual interest rate implicit in the sales discount and should the customer borrow from the bank so that he can take advantage of the discount?

  What the Savannah return on investment

The net profit is $237,500, and the required rate of return is 15.0%. What the Savannah's return on investment (ROI)

  Why do think continue to use in the US

Why do you think we continue to use it in the US? Companies must use the same cost flow calculations and assumptions (Kenton, 2019).

  What is the Ending Balance of the Work In Process

Sold jobs for P425,000 on account. The cost of the jobs was P342,000. What is the Ending Balance of the Work In Process

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd