Required: Calculate the following: a. estimated total cost of completion, b. estimated profit on completion, c. estimated profit to date. Lim Construction is building Univ tower Near Unicity, Sibu. The date of commencement of construction is 1 January 2021 and the date of completion is on 31 December 2026. During the year ending 31 December 2021, the following information reported: Contract price Plant sent to site Purchasing of materials Wages paid Direct expenses Overhead incurred RM 13,000,000.00 2,000,000.00 3,000,000.00 1,500,000.00 1,000,000.00 500,000.00 At the end of December 2021, the following available: 1. Material unused on site amounted RM1,000,000.00 2. Wages owing RM500,000.00 3. Value of work certified RM6,000,000.00 4. Cost of work done but not yet certified amounted to RM500,000.00 5. Plant at site RM1,500,000.00
Required: Calculate the following: a. estimated total cost of completion, b. estimated profit on completion, c. estimated profit to date. Lim Construction is building Univ tower Near Unicity, Sibu. The date of commencement of construction is 1 January 2021 and the date of completion is on 31 December 2026. During the year ending 31 December 2021, the following information reported: Contract price Plant sent to site Purchasing of materials Wages paid Direct expenses Overhead incurred RM 13,000,000.00 2,000,000.00 3,000,000.00 1,500,000.00 1,000,000.00 500,000.00 At the end of December 2021, the following available: 1. Material unused on site amounted RM1,000,000.00 2. Wages owing RM500,000.00 3. Value of work certified RM6,000,000.00 4. Cost of work done but not yet certified amounted to RM500,000.00 5. Plant at site RM1,500,000.00
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 26E
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College