Brady Construction Company contracted to build an apartment complex for a price
ID: 2450474 • Letter: B
Question
Brady Construction Company contracted to build an apartment complex for a price of $6,600,000. Construction began in 2016 and was completed in 2018. The following is a series of independent situations, numbered 1 through 6, involving differing costs for the project. All costs are stated in thousands of dollars.
Costs Incurred During Year
(As of the End of the Year)
Situation
2016
2017
2018
2016
2017
2018
Complete the following table. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar. Negative amounts should be indicated by a minus sign.)
Brady Construction Company contracted to build an apartment complex for a price of $6,600,000. Construction began in 2016 and was completed in 2018. The following is a series of independent situations, numbered 1 through 6, involving differing costs for the project. All costs are stated in thousands of dollars.
Explanation / Answer
Situation 1 2016 2017 2018 Contract Price 6600000 6600000 6600000 Actual costs to date 16,60,000 42,70,000 56,50,000 Estimated costs to complete 39,90,000 13,80,000 0 Total estimated costs 56,50,000 56,50,000 56,50,000 Estimated gross profi 9,50,000 9,50,000 9,50,000 Percentage Of Completion 29.38% 75.58% 100% Gross Profit 279115 438850 232035 2018 Contract Price Actual costs to date Gross pofit Completed Contract Method 6600000 56,50,000 9,50,000 Situation 2 2016 2017 2018 Contract Price 6600000 6600000 6600000 Actual costs to date 1660000 3040000 6080000 Estimated costs to complete 3990000 3040000 0 Total estimated costs 5650000 6080000 6080000 Estimated gross profi 950000 520000 520000 Percentage Of Completion 29.38% 50.00% 100% Gross Profit 279115 -19115 260000 2018 Contract Price Actual costs to date Gross pofit Completed Contract Method 6600000 60,80,000 5,20,000 Situation 3 2016 2017 2018 Contract Price 6600000 6600000 6600000 Actual costs to date 1660000 4270000 7150000 Estimated costs to complete 3990000 2780000 0 Total estimated costs 5650000 7050000 7150000 Estimated gross profi 950000 -450000 -550000 Percentage Of Completion 29.38% 60.57% 100% Gross Profit 279115 -729115 -100000 2018 Contract Price Actual costs to date Gross pofit Completed Contract Method 6600000 71,50,000 -5,50,000 Situation 4 2016 2017 2018 Contract Price 6600000 6600000 6600000 Actual costs to date 660000 3820000 5140000 Estimated costs to complete 4620000 955000 0 Total estimated costs 5280000 4775000 5140000 Estimated gross profi 1320000 1825000 1460000 Percentage Of Completion 12.50% 80.00% 100% Gross Profit 165000 1295000 0 2018 Contract Price Actual costs to date Gross pofit Completed Contract Method 6600000 51,40,000 14,60,000 Situation 5 2016 2017 2018 Contract Price 6600000 6600000 6600000 Actual costs to date 660000 3820000 6240000 Estimated costs to complete 4620000 2780000 0 Total estimated costs 5280000 6600000 6240000 Estimated gross profi 1320000 0 360000 Percentage Of Completion 12.50% 57.88% 100% Gross Profit 165000 0 195000 2018 Contract Price Actual costs to date Gross pofit Completed Contract Method 6600000 62,40,000 3,60,000 Situation 6 2016 2017 2018 Contract Price 6600000 6600000 6600000 Actual costs to date 660000 3820000 7220000 Estimated costs to complete 6155000 3140000 0 Total estimated costs 6815000 6960000 7220000 Estimated gross profi -215000 -360000 -620000 Percentage Of Completion 9.68% 54.89% 100% Gross Profit -215000 -145000 -260000 2018 Contract Price Actual costs to date Gross pofit Completed Contract Method 6600000 72,20,000 -6,20,000
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