only1kariyah
31.03.2021 •
Business
Yanmei Construction Company began operations on January 1, 2020. During the year, Yanmei Construction entered into a contract with Lundquist Corp. to construct a manufacturing facility. At that time, Yanmei estimated that it would take 5 years to complete the facility at a total cost of $4,500,000. The total contract price for construction of the facility is $6,000,000. During the year, Yanmei incurred $1,185,800 in construction costs related to the construction project. The estimated cost to complete the contract is $4,204,200. Lundquist Corp. was billed and paid 25% of the contract price.
Instructions:
Prepare schedules to compute the amount of gross profit to be recognized for the year ended December 31, 2020, and the amount to be shown as "costs and recognized profit in excess of billings" or "billings in excess of costs and recognized profit" at December 31, 2020, under each of the following methods. Show supporting computations in good form.
a. Completed-contract method.
b. Percentage-of-completion method.
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Ответ:
Yanmei Construction Company
Gross profit for December 31, 2020:
Completed Contract Percentage of Completion
Revenue recognized $1,500,000 $1,320,000
($1,185,800/$5,390,000 * $6,000,000)
Costs incurred $1,185,800 $1,185,800
Gross profit $314,200 $134,200
Costs and recognized profit in excess of billings
Total billing in 2020 $1,500,000 $1,500,000
Costs incurred $1,185,800 $1,185,800
Recognized profit $314,200 $134,200
Total costs + profit $1,500,000 $1,320,000
Excess of billings $0 ($180,000)
Explanation:
a) Data and Calculations:
Estimated contract completion period = 5 years
Estimated total cost of completion = $4,500,000
Total contract price = $6,000,000
Construction costs incurred during the year = $1,185,800
Estimated cost to complete the contract = $4,204,200
Total costs to be incurred = $5,390,000
Billing = $1,500,000 (25% of $6,000,000)
Ответ:
i. 170 m
ii. 850 m
Explanation:
Question
Arjun and his son Arav were standing ‘x’ m away from each other. They are equidistant (Y m) from a vertical cliff. Arjun burst a balloon and Arav heard the direct sound 0.5 seconds later and the echo after 2 seconds. If the speed of sound in air is 340m/s ,calculate
i. the distance between Arjun and Arav
ii. the distance between the cliff and Arjun
The parameters given are;
The time for the sound to reach Arav, = 0.5 s
Time for the echo to echo to reach Arav, = 2 s
The distance between Arjun and Arav =
The distance between Arav and the cliff =
The speed of sound in air, s = 340 m/s
The formula for speed, s, is , therefore;
= 0.5 s × 340 m/s = 170 m
The distance between Arjun and Arav = 170 m
ii. Since Arav hears the direct sound before the echo, he is closer to the cliff than Arjun, therefore, we have;
= 2 s × 340 m/s = 680 m
Therefore, the distance between Arav and the cliff = 680 m
Which gives the distance between the cliff and Arjun, = The distance between Arav and the cliff + The distance between Arjun and Arav
= 680 + 170 = 850 m.