The BLUE Group has made a financial summary of their power plant project, which took them three
Question:
The BLUE Group has made a financial summary of their power plant project, which took them three years to complete. The information is summarized in the table below. Using the provided Excel template, please complete all percentage of completion, partial revenue and expenses calculations. Once you complete entering all your calculations in the spreadsheet, answer the specific questions (Q3 to Q8) asked in the quiz. Use Alternative A and Alternative B for calculations, and measure the progress by the Cost to Cost Method for both Alternatives.
3.
Question 3
The BLUE Group has made a financial summary of their power plant project, which took them three years to complete. Please answer questions 3-8 based on the table from the instructions page. Use Alternative A and Alternative B for calculations, measure the progress by Cost to Cost Method for both Alternatives.
What is the total year expense for the first year?
4.
Question 4
What is the project’s total estimated gross profit at the end of Year 1 and at the end of Year 2?
5.
Question 5
What is the percentage of completion at the end of Year 1 and at the end of Year 2?
6.
Question 6
At the end of Year 2, what is the cost of revenue to date by Alternative A?
7.
Question 7
At the end of Year 2, what is the revenue to date by Alternative B?
8.
Question 8
For Year 3 only, what is the BLUE Group’s gross profit on this project?
Project Data (in $) | |||
Year 1 | Year 2 | Year 3 | |
Contract Amount | 1,000,000 | 1,010,000 | 1,016,000 |
Materials Purchased | 120,000 | 80,000 | 76,000 |
Materials Paid | 100,000 | 90,000 | 86,000 |
Materials Used | 85,000 | 116,000 | 75,000 |
Wages Incurred | 79,000 | 89,000 | 90,000 |
Wages Paid | 60,000 | 100,000 | 98,000 |
Subcontractor Cost Incurred | 76,000 | 70,000 | 121,000 |
Subcontractor Paid | 75,000 | 85,000 | 107,000 |
Estimated Cost to Complete | 534,000 | 278,000 | 0 |
Expert Answer:
ANSWER Total cost incurred Materials used Wages incurred Subcontractor cost incurred For Alternative A Total cost incurred in Year 1 85000 79000 76000 240000 Total cost incurred in Year 2 116000 89000 ... View the full answer
