Janah Co. signed a construction contract with the ministry of health to build a hospital in three
Question:
Janah Co. signed a construction contract with the ministry of health to build a hospital in three years starting 1/1/2017 and finishing 31/12/2019. The contract price is set for 88,000 and the overall costs are estimated to be 56,000.
You have the following information:
- The contract price is increased by 1,000 by the end of 2017 and another 1,000 by the end of 2018.
- The estimated overall costs increased by 4,000 by the end of 2018.
- Cumulative actual cost by the end of 2017 is 14,000.
- Estimated Costs for Completion by the end of 2018 is 15,000. And the contract completed on time.
2017 | 2018 | 2019 | |
Cumulative Actual costs | 14,000 | 45,000 | |
Estimated Costs for Completion | 15,000 | 0 | |
Overall Costs | 56,000 | 60,000 | |
Percentage of Completion | 75% | 100% | |
Revenues for each year | 22,250 | 22,500 | |
Profit for each year | 8,250 | 14,250 |
- Instructions: use numbers only (For 1,000 use 1000; For 10% use 10)
Calculate Cumulative Actual costs for 2019: JD
Calculate Actual costs for year 2018 only: JD
Calculate Estimated Costs for Completion for 2017: JD
Calculate Overall Costs for 2018: JD
Calculate Percentage of Completion for year 2019 only: %
Calculate Revenues for year 2018 only: JD
Calculate Profit for year 2019 only: JD
Business Law Principles and Practices
ISBN: 978-1133586562
9th edition
Authors: Arnold J. Goldman, William D. Sigismond