item units cost total cost estimated sales price

cosst of sell nrv

a 1,000 120 120000 180 30 150
b 1,500 110 165000 140 20 120
c 1,200 150 180000 170 30 140
d 1,800 140 252000 190 30 160
e 1,700 130 221000 200 40 160

AST LONG TERM CONSTRUCTION CONTRACT

Percentage of completion method
estimated gross profit % of completion RGP Cost incurred CIP
laguna 600000 0.67 402000 2400000 2802000
bulacan -200000 0.13 -26000 2800000 2774000
428000 5576000

Zero profit Method

estimated gross profit % of completion RGP Cost incurred CIP
laguna 600000 0.67 0 2400000 2400000
bulacan -200000 0.13 0 2800000 2800000
5200000

problem 1
pecentage of completion = total cost incurred- to date / total estimated cost to complete

total cost incurred

Cumulative cost incurred 2,400,000 2800000
total estimated cost to complete
3,600,000 3200000
percentage completion 0.67 0.88

contract price 4,200,000 3000000

total estimated cost to c 3,600,000 3200000
600,000 -200000
percentage completion 0.6667 0.8750
400,000 -175,000 225,000 percentage completion method

contract price 4,200,000 3000000

total estimated cost 3,600,000 3200000
600,000 -200000
percentage completion 0.00
gross profit 0 -200,000 -200,000 percentage completion method
 based muna sa nrv and cost
then kung ano mas mababa
yun ang imumultiply mo sa unit

5576000 5200000
3200000 3200000
net progres 2376000 2000000

TOTAL ESTIMATED COST TO COMPLETE

cost incurred - cuurent year
PLUS: Cost incurred - Prioryear
Total Cost incurred to date
PLUS:Estimated cost to complete

CONTRACT PRICE
LESS: TOTAL ESTIMATED COST TO COMPLETE
cost incurred - cuurent year
PLUS: Cost incurred - Prioryear
Total Cost incurred to date
ge completion method PLUS:Estimated cost to complete
ESTIMATED GROSS PROFIT
x % of completion
Realized Gross Profit - to date
Less: Realized Gross Profit - Prior Year
Realiazed Gross Profit - Current Year
ge completion method