ANSWER KEY

Contract Price 84,000,000

CR, 2015 4,800,000
CR, 2014 (10,800,000)
RGP 5,880,000
CR, 2016 (25,200,000)
CI, 2015 4,212,000
CR, 2015 48,000,000
CI, 2014 9,120,000
Divided by: 84,000,000
Divided by: 70%
% of completion 70%
Multiplied by: 30%
ECTC 21,960,000
Contract Price 12,000,000
Cost Incurred 1,800,000
Estimated Cost to complete 7,200,000
Total Estimated Costs 9,000,000
Expected Gross Profit 3,000,000
% of Completion 20%
RGP 600,000

RGP 600,000
Cost Incurred 1,800,000
Contract Revenue 2,400,000
RGP 1,134,000
Divide by: % Of Completion 33 1/3%*
Expected Gross Profit 3,402,000
Total Estimated Costs 6,615,000
Contract Price 10,017,000

*Cost Incurred 2,205,000

Est. cost to complete 4,410,000 33 1/3%
Total Estimated Costs 6,615,000
Contract Price 9,000,000
Total Estimated Costs 7,200,000
Expected Gross Profit 1,800,000
% of completion x 75%
Gross Profit to date 1,350,000
Cost Incurred to date 5,400,000
Construction in Progress 6,750,000
Billings to date (3,600,000)
CIP net CB 3,150,000
 Percentage of Completion
BUILDING 1 BUILDING 2
Contract Price 420,000 Contract Price 300,000
Total Est. Costs 360,000 Total Est. Costs 350,000
Expected GP 60,000 Expected GP (50,000)
% of completion 66 2/3% % of completion -
RGP 40,000 RL (50,000)

Net Realized Loss (10,000)

Interest Income 13,000
OPEX (30,000)
Net Income (27,000)
 Zero Profit Method
Realized Loss (50,000)
Interest Income 13,000
OPEX (30,000)
Net Income (67,000)
Gross Profit to date 162,576
% of completion 60%
Expected Gross Profit 270,960
Contract Price 8,000,000
Total Estimated Costs 7,729,040
Estimated cost to complete (3,091,616)
Cost Incurred to date 4,637,424

Cost Incurred to date 4,637,424

Cost Incurred 2021 (3,136,418)
Cost Incurred 2020 1,501,006
Est. cost to complete 6,004,024 20%
Total Estimated Costs 7,505,030
Contract Price 5,000,000 CI to date 2,550,000
Total GP (400,000) Divided by: 60%
Total Est. Costs 4,600,000 Multiplied by: 40%
CI to date (2,550,000) Est. cost to comp.1,700,000
CI 2018 2,050,000

Construction in Progress 3,000,000

Divided by: Contract Price 5,000,000
% of completion 60%
 Construction in Progress
2021 Exp. 105,000
2021 Profit ? 17,000
2021 End. Bal. 122,000
2022 Exp. 192,000
2022 Profit ?
2022 End. Bal. 364,000
 Construction in Progress
2021 Exp. 105,000
2021 Profit ? 17,000
2021 End. Bal. 122,000
2022 Exp. 192,000
2022 Profit ? 50,000
2022 End. Bal. 364,000
 Contract 1 Contract 2 Contract 3
(1) Cost Incurred 280,000 180,000 180,000
(2) Est. cost to complete 70,000 120,000 320,000
(3) Total Estimated Costs 350,000 300,000 500,000
% of completion (1/3) 80% 60% 36%
 Contract 1 Contract 2 Contract 3
GP to date 200,000 90,000 144,000
GP prior year (150,000) (70,000) -
GP current year 50,000 20,000 144,000

214,000
Contract Billings 470,000
Accounts Receivable (150,000)
Cash Collection 320,000
Contract Price 20,000,000
CIP 2017 (4,000,000)
CIP 2019 (8,000,000)
CIP 2018 8,000,000
Gross Profit 1,000,000
Cost Incurred 7,000,000
CI 2017 3,600,000
CI 2018 7,000,000
Cost Incurred to date 10,600,000
Divided by: 60%
Multiplied by: 40%
Estimated cost to complete 7,066,667
Est. Cost at completion 6,960,000
Multiplied by: 67%
Cost Incurred to date 4,663,200
Cost Incurred Prior year (978,750)
Cost Incurred Current Year 3,684,450