Construction Accounting And Financial Management (4th Edition)
Construction Accounting And Financial Management (4th Edition)
4th Edition
ISBN: 9780135232873
Author: Steven J. Peterson MBA PE
Publisher: PEARSON
Question
Book Icon
Chapter 4, Problem 8P
To determine

Ascertain the estimated cost at completion of project and variance for each cost.

Blurred answer
Students have asked these similar questions
9. A contractor has a contract to remove and replace the existing landscape and sidewalks around an office building. The work includes demolition of the existing landscaping and sidewallks, importing fill and grading around the office building, constructing new concrete sidewalks, and new landscaping. The contractor uses the cost codes in Figure 2-6. The contractor will perform all of the work except placing the site concrete and the landscaping. The original estimate for the demolition was $30,000, and a $5,000 change order has been approved to remove some unexpected debris found during the demolition. The demolition work has been completed at a cost of $33,562. The original estimate for the fill and grading was $17,500 and a $2,000 change order for importing additional fill to replace the debris has been approved. The fill and grading costs to date are $17,264, and the estimated cost to complete has been estimated at $2,236. The original budget for the labor to pour the concrete was…
Alpine Company solicited bids from several contractors to construct an addition to its office building. The lowest bid received was for $1,200,000. Alpine decided to construct the addition itself at a cost of $1,100,000. What amount should be recorded in the building account?
residential client hired a general contractor (GC) to construct a major $3 million executive home. The client contracted separately with a reputable architect for the design. After the permit was obtained, the architect’s contract was closed out. During the course of construction, the owner and the city had requested several changes, but none of them were formalized into the contract. Many of these were additive but some were also deductive changes. Many of the changes were due to building code changes. Because the general contractor understood this to be a time and materials (T&M) project, they had not felt it was necessary to submit change orders against a “budgeted” amount. The GC had previously invoiced and received 67% of the original budget, or $2 million, from the owner. These invoices were all reviewed and approved by the lender. At approximately 90% completion, the GC invoiced the owner for the full 100% amount of the original $3 million estimate. When pressed, the GC…
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
CONCEPTS IN FED.TAX., 2020-W/ACCESS
Accounting
ISBN:9780357110362
Author:Murphy
Publisher:CENGAGE L