Reference no: EM133025484
Question - Maria Construction company won the public bidding wherein the contract was awarded starting Jan. 7, 2019, to construct a bridge for a total price of P16,800,000 payable in 5 installments. Terms of payment stipulated that 20% is paid as mobilization fee, the remaining 80% is spread over four quarters of work. The final payment is due ten days after the turnover of the bridge. By December 31, 2019, three quarters of the bridge was completed according to engineer's estimate. The construction company billed the client an amount equivalent to 3 quarters work. By December 31, 2019, a total of P8,400,000 contract costs was incurred. It is estimated that an additional P3,600,000 would be required to complete the construction of the bridge.
Required -
1) Using cost to cost method, compute for the realized profit for 2019.
2) Using out-put method - proportional cost approach, (engineer's estimate) determine the balance of the Contract Asset account at Dec. 31, 2019.
3) Using output measure - actual cost approach (engineer's estimate), determine the realized gross profit for 2019.
|
American institute of certified public accountants
: Research the new standard published by the Auditing Standards Board of the American Institute of Certified Public Accountants (AICPA).
|
|
What was the cost of direct materials used during the year
: During the current year, the cost of direct materials purchased by a manufacturing firm was $340,000, What was the cost of direct materials used during the year
|
|
How much money must be deposited into the fund
: A trust fund is set up to make payments of $1000.00 at the end of each quarter for five years. How much money must be deposited into the fund
|
|
What is the size of the equal installments
: A loan of $4484 borrowed today is to be repaid in three equal installments due in two years, three years, and five years, What is size of equal installments
|
|
Determine the balance of the Contract Asset account at Dec
: Using out-put method - proportional cost approach, (engineer's estimate) determine the balance of the Contract Asset account at Dec. 31, 2019
|
|
Which project should the firm accept
: If the required return is 10 percent and the company applies the profitability index decision rule, which project should the firm accept
|
|
Calculate the net income of the event
: A Greener World sponsors a marathon as a fund raiser. Fixed costs for the event is $30,000. Calculate the net income of the event if 600 runners register
|
|
What is meaning of the term equivalent units of production
: Question - What is the meaning of the term equivalent units of Production (EUP)? What trying to determine when the apply EUP
|
|
What type of financing resource is archie using
: Archie needs funding to start his dog walking business, so he takes out a bank loan that is secured against his home. What type of financing resource is Archie
|