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cricket20 [7]
3 years ago
15

On February 1, 2020, Nash's Contractors agreed to construct a building at a contract price of $5,700,000. Nash's estimated total

construction costs would be $3,920,000 and the project would be finished in 2022. Information relating to the costs and billings for this contract is as follows:
2020 2021 2022
Total costs incurred to date $1,470,000 $2,580,000 $4,550,000
Estimated costs to complete 2,450,000 1,720,000 -0-
Customer billings to date 2,100,000 3,920,000 5,500,000
Collections to date 1,900,000 3,400,000 5,400,000

Fill in the correct amounts on the following schedule. For percentage-of-completion accounting and for completed-contract accounting, show the gross profit that should be recorded for 2020, 2021, and 2022.

2020 $________ 2020 $________
2021 $________ 2021 $________
2022 $________ 2022 $________
Business
1 answer:
Romashka-Z-Leto [24]3 years ago
7 0

Answer:

Nash's Contractor

Gross profit that should be recorded for 2020, 2021, and 2022:

Percentage -of completion                     Completed-contract

2020 $___667,500_____                      2020 $___0_____

2021 $____361,395____                       2021 $____0____

2022 $____121,105____                       2022 $____1,150,000____

Explanation:

a) Data and Calculations:

Contract price = $5,700,000

Estimated construction costs = $3,920,000

Project completion date = 2022

Costs and Billings:

                                                     2020            2021            2022

Total costs incurred to date  $1,470,000 $2,580,000 $4,550,000

Estimated costs to complete 2,450,000     1,720,000     -0-

Customer billings to date       2,100,000    3,920,000  5,500,000

Collections to date                 1,900,000     3,400,000  5,400,000

Percentage of completion:

2020:

Revenue  =        $2,137,500 ($1,470,000/$3,920,000 * $5,700,000)

Cost incurred =   1,470,000

Gross profit =     $667,500

2021:

Revenue =         $1,471,395 ($1,110,000/$4,300,000 * $5,700,000)

Cost incurred =   1,110,000

Gross profit =     $361,395

2022:

Revenue =      $2,091,105 ($5,700,000 - $2,137,500 - $1,471,395)

Cost incurred   1,970,000

Gross profit =     $121,105

Completed contract

2022: Revenue = $5,700,000

Total costs =          4,550,000

Gross profit  =        $1,150,000

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If you are including a copy of your résumé with your cover letter, you should type _____ as the last word on your cover letter.
Fed [463]
P.S

Though including a P.S. on your cover letter may at first seem unprofessional, it actually stands for Post Script, and should be on the cover letter.

4 0
3 years ago
The Good Chocolate Company makes a variety of chocolate candies, including a 12-ounce chocolate bar (340 grams) and a box of six
joja [24]

Answer:

A) ≈ 3.509 grams

B) The process is not capable because the lowest Cpk which is 1.89 ≈ 1.9 is far from the ideal 1.33 capability index number ( NO )

c) 1.051 ounces

Explanation:

A) The largest standard deviation ( in grams)

This can be calculated applying the capability index formula and according to the capability index formula the value at which a process is capable is at  : 1.33

hence the largest standard deviation =  upper limit - lower limit / 6 * 1.33

 ( 354 - 326 ) / 7.98 = 3.5087 ≈ 3.509 grams

B) we first calculate the process mean and std of the box

standard deviation = \sqrt{variance }

std of the six-bar box = \sqrt{6*0.86^2}  = 2.106

process mean = 6 * ( 1.03 * 28.33) = 175.079

the mean is not centered between the upper specification and the lower specification hence we will apply the formulae used in calculating the capability index for an uncentered process

Cpk = (upper value - process mean) / (3 * std of box),

         = (187 - 175.079) / ( 3 * 2.106) = 11.921 / 6.318 = 1.89

Cpk =  (process mean -  lower value ) / (3*std of box)

       = ( 175.079 - 153 ) / (3 * 2.106) = 22.079 / 6.318 = 3.49

The process is not capable because the lowest Cpk which is 1.89 ≈ 1.9 is far from the ideal 1.33 capability index number ( N0 )

c ) lowest setting

calculate the value of the mean using capability index of 1.33

Cpk = (upper value - mean ) / 3 * std

mean = 187 - 1.33 * 3 * 2.106

           = 187 - 8.40 = 178.60 grams

Cpk = ( process mean - lower value ) / 3 * std

 mean = 1.33 * 3 * 2.106 + 153

            = 8.40 + 153 = 161.40 grams

the lowest setting in ounces

= 178.60 / ( 6 bar * 28 .33)

= 178.60 / 169.98 = 1.051 ounces

5 0
3 years ago
A stock has a market price of $46.10 and pays a $2.40 annual dividend. what is the dividend yield? 4.13 percent 4.84 percent 5.2
hichkok12 [17]
To solve:
Dividend yield = Annual Dividend / Market Price
Dividend yield = $2.40 / $46.10
Dividend yield = 0.0521
Then we are going to multiply by 100 to get the total in a percent
Dividend yield percent = (0.0521)(100)
Dividend yield = 5.21%
6 0
2 years ago
Supervisors counting cash receipts daily is an example of:.
netineya [11]

Answer:

Independent internal verification

Explanation:

3 0
2 years ago
Zoie makes 2 products from a common input. Each product may be sold at the split-off point or processed further. The following i
Ymorist [56]

Answer:

Zoie

The minimum amount the company should accept if Product 1 is sold at the split-off point is:

= $30,000.

Explanation:

a) Data and Calculations:

                                                          Product 1    Product 2

Allocated joint processing costs         21,200        35,700

Sales value at split-off point                38,100        19,200

Costs of further processing                17,000        19,900

Sales value after further processing 30,000       28,300

The minimum amount the company should accept if Product 1 is sold at the split-off point is $30,000.

b) Further processing of Product 1 does not make economic sense.  Zoie should sell the product at split-off point at $38,100.  Similarly, based on the facts provided, Product 2 hardly deserves further processing.

5 0
3 years ago
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