This information should be used for questions 4-6. The Borer Company has a contract for a trenchless pipe-laying project which has four tasks as the major segments. Completion is allocated to each portion according to its direct cost, and output is the measure of progress for each portion.

Allocation of Completion

Task	Estimated Cost ($)	Total Quantity	Quantity to Date	Allocated Completion
1	30,000	3,000 CY	3,000 CY	0.1
2	50,000	1,000 CY	800 CY	0.3
3	15,000	25,000 SF	10,000 SF	0.15
4	85,000	2,000 CY	1,500 CY	0.45
	180,000			1.00

Calculate the percentage of completion, presenting it as a ratio (i.e. 0.XX, accurate to 2 decimal places, rounding if necessary).

5.

 

The cost summary is shown in the table below.

Contract Amount = $360,000

Total Estimated Cost of Revenue	To Date	To Finish
Direct Cost	$150,000	$120,000
Project Overhead	$20,000	$10,000

Calculate the total estimated gross profit.

6.

Use the effort expended method and calculate the revenue earned to date with Alternative B.

Answer rating: 100% (QA)

To calculate the percentage of completion for each task you need to divide the quantity to date by t... View the full answer