An engineer failing to complete his first building contract worth P70,000 in a specified time is compelled to pay a penalty of 1/2 of 1% per day for the first 6 days of extra time required, and for the each additional day thereafter, the stipulated penalty is increased by 10% of P35.00 each day. If he pays the total penalty of P6,160, by how many days did he overrun his contract time? O 14
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- A contractor failing to complete his contract worth P700,000 in a specified time is compelled to pay the penalty of ½ of 1% per day for the first 6 days of the extra time required, and for each additional day thereafter, the stipulated penalty is increased by 10% each day. If he pays a total penalty of P61,600 by how many days did he overrun his contract time?A contractor has 50 men of the same capacity. They can complete the work in 30 days, the working day being 8 hours, but the contract expires in 20 days. He decides to put 10 additional men. If all the men get P300 per day for a full or part time day, & if the liquidated damages are P2k for every full or part day he requires over his contract time. How much will it cost with the additional 10 men.You were delayed for 13 days from date of delivery time. A standard liquidated damages (LD) is imposed on you. Compute how much are you going to receive in your final billing if your contract amount is Php 3.5 million.
- A contractor has a job which should be completed in 100 days. At present, he has 80 men on the job and it is estimated that they will finish the work in 130 days. Of the 80 men, 50 are each paid ₱ 120.00 a day, 25 at ₱ 180.00 a day, and 5 at ₱ 250.00 a day. For each day beyond the original 100 days, the contractor has to pay ₱ 500.00 liquidated damages.A contractor has a job which should be completed in 135 days. At present, he has 80 men on the job and it is estimated that they will finish the work in 160 days. Of the 80 men, 50 are each paid 255 a day, 25 at 450 a day, and 5 at 790 a day. For each day beyond the original 135, the contractor has to pay 520 liquidated damages. Men are added so that he can complete the work on time. If of the additional men, 2 men are paid 470 a day, and the rest at 275 a day, would the contractor save the money by employing more men and not paying the fine? Show cashflow diagramJorg is building an office building for Wilmington Company for $20,000,000. The contract has the following characteristics: • The office building is built to the customer’s specifications and the customer can make changes to these specifications over the contract term. • Progress payments are made by the customer throughout construction. • The customer can cancel the contract at any time (with a termination penalty); any work in process is the property of the customer. Jorg provides you with the following details: December 31 2019 2020 2021 Costs incurred to date $8,000,000 $16,000,000 $18,000,000 Estimated costs to complete 6,000,000 3,000,000 — Billings to date 8,000,000 16,000,000 20,000,000 Collections to date 6,000,000 12,000,000 18,000,000 Required: 1. Calculate the estimated total gross profit on the contract as of December 31, 2019, 2020, and 2021. 2. Calculate the percentage of completion for 2019, 2020, and 2021. 3.…
- A factory sold to one of its customers a certain amount of products worth $120,000. The client had to settle the commitment at the end of three months by paying $142,921.92. However, after sixty days, the client proposed to settle the debt in the amount of $129,792. Will it be advantageous to accept the proposal?A worker is allowed 60 hours to complete a job on a guaranteed wage of OMR 10 per hour. He finishes the job in 48 hours. How much will be his earnings under Halsey Plan? a. OMR 540 b. OMR 450 c. OMR 650 d. OMR 700A short time later, the production workers won a new 3-year union contract that granted them an immediate 40 -per-hour wage increase, plus an additional 25 -per-hour wage increase in years 2 and 3. Assume that in future years, a 25 -per-hour wage increase will be granted. (a) By how much does the present worth of replacing one production employee increase? Assume an interest rate of 8%, a single 8-hour shift, and 250 days per year. (b) What are the ethical issues of replacing workers with advanced technologies from the firm’s, the workers’, and society’s perspective?
- Jeff Heun, president of Concrete Always, agrees to construct a concrete cart path at Dakota Golf Club. Concrete Always enters into a contract with Dakota to construct the path for $200,000. In addition, as part of the contract, a performance bonus of $40,000 will be paid based on the timing of completion. The performance bonus will be paid fully if completed by the agreed-upon date. The performance bonus decreases by $10,000 per week for every week beyond the agreed-upon completion date. Jeff has been involved in a number of contracts that had performance bonuses as part of the agreement in the past. As a result, he is fairly confident that he will receive a good portion of the performance bonus. Jeff estimates, given the constraints of his schedule related to other jobs, that there is 55% probability that he will complete the project on time, a 30% probability that he will be 1 week late, and a 15% probability that he will be 2 weeks late. Instructions a. Determine the transaction…Jonas Consulting enters into a contract to provide cost management consulting services over a 1-year period for $10,000 per month. At the end of the contract, Jonas will either give the customer a $24,000 refund or be entitled to an additional $24,000, depending on the level of cost savings. The company believes there is an 80% chance that it will be entitled to an additional $24,000 and a 20% chance it will give a refund of $24,000. In addition, Jonas believes it is probable that a significant reversal of any previously recognized revenue will not occur. The contract performance is determined to be satisfied over time. Required: 1. Determine the monthly transaction price that Jonas should use for recording the contract and prepare Jonas’s journal entry at the end of the first month of the contract using the most likely amount approach.On April 1st, Bob the Builder entered into a contract of one-month duration to build a barn for Nolan. Bob is guaranteed to receive a base fee of $5,000 for his services in addition to a bonus depending on when the project is completed. Nolan created incentives for Bob to finish the barn as soon as he can without jeopardizing the structural integrity of the barn. Nolan offered to pay an additional 30% of the base fee if the project finished 2 weeks early and 10% if the project finished a week early. The probability of finishing 2 weeks early is 30% and the probability of finishing a week early is 60%. What is the expected transaction price if Bob estimates variable consideration as the expected value?
