Construction Accounting And Financial Management (4th Edition)
4th Edition
ISBN: 9780135232873
Author: Steven J. Peterson MBA PE
Publisher: PEARSON
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Chapter 7, Problem 17P
A project consists of six tasks. Task A is scheduled to begin at the start of Week 1 and finish at the end of Week 4. Task B is scheduled to begin at the start of Week 1 and finish at the end of Week 2. Task C is scheduled to begin at the start of Week 3 and end at the end of Week 4. Task D is scheduled to begin at the start of Week 1 and end at the end of Week 1. Task E is scheduled to begin at the start of Week 2 and end at the end of Week 4. Task F is scheduled to begin at the start of Week 4 and end at the end of Week 4. The budgeted cost for Task A is $10,000, for Task B is $2,000, for Task C is $3,000, for Task D is $1,000, for Task E is $6,000, and for Task F is $4,000. At the end of the third week, Task A is 80% complete, Task B is 100% complete, Task C is 40% complete, Task D is 100% complete, Task E is 55% complete, and Task F has not started. What is the SPI for the project at the end of the third week?
The ACWP at the end of the third week for the project in Problem 13 is $16,500. Determine the CPI for the project.
Determine the total estimated cost at completion and estimated cost to complete for the project in Problem 15, assuming the CPI remains the same through the remainder of the job.
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The number of units started and completed during September was:
Use this information about Department A to answer the question that follow.Department A had 5,000 units in Work in Process that were 60% completed as to labor and overhead at the beginning of the period. 34,000 units of direct materials were added during the period, 31,000 units were completed during the period, and 8,000 units were 80% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. The first-in, first-out method is used to cost inventories.The number of equivalent units of production for conversion costs for the period was
Use this information about Department E to answer the question that follows.
Department E had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $12,500. There were 14,000 units of direct materials added during the period at a cost of $28,700. There were 15,000 units completed during the period, and 3,000 units were 75% completed at the end of the period. All materials are added at the beginning of the process, and the average cost method is used to cost inventories. Direct labor was $32,450, and factory overhead was $18,710.
The number of equivalent units of production for the period is
a.17,250
b.15,650
c.18,000
d.14,850
Chapter 7 Solutions
Construction Accounting And Financial Management (4th Edition)
Ch. 7 - What are the key steps in the monitoring and...Ch. 7 - What does it indicate when a superintendent has to...Ch. 7 - What is the best way to control labor costs? What...Ch. 7 - Why are equipment costs for company-owned...Ch. 7 - What is an internai change order and how is it...Ch. 7 - Why is it important to have a realistic budget for...Ch. 7 - What are some of the problems with using the CPI?Ch. 7 - Prob. 8DQCh. 7 - During the design phase, what are the steps for...Ch. 7 - Determine the estimated cost of the work performed...
Ch. 7 - Determine the estimated cost of the work performed...Ch. 7 - A project consists of three tasks. Task A is...Ch. 7 - A project consists of six tasks. Task A is...Ch. 7 - The ACWP at the end of the second week for the...Ch. 7 - A project consists of six tasks. Task A is...Ch. 7 - Determine the total estimated cost at completion...Ch. 7 - A project consists of six tasks. Task A is...Ch. 7 - Prob. 18P
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- Use this information about Department E to answer the question that follows. Department E had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $12,500. There were 14,000 units of direct materials added during the period at a cost of $28,700. There were 15,000 units completed during the period, and 3,000 units were 75% completed at the end of the period. All materials are added at the beginning of the process, and the average cost method is used to cost inventories. Direct labor was $32,450, and factory overhead was $18,710. The total (whole) units to account for during production is a.15,650 b.17,250 c.17,700 d.18,000arrow_forwardDepartment A had 6,000 units of work in process that were 60% completed at the beginning of the period; 31,000 units were completed and transferred during the period, and 3,000 units were 80% completed at the end of the period. All materials were added at the beginning of the process. Determine the number of equivalent units for (a) direct materials and (b) conversion.arrow_forwardContinuation.. Data for Finishing Department are as follows: Cost Data: Beginning Work in Process Costs Transferred In from Prior Dept 27,225 Costs Incurred in this Department: Materials 1,500 Labor 5,500 Overhead 4,500 Current Month Cost: Costs Transferred In from Prior Dept ?????? Costs Incurred in this Department: Materials 23,500 Labor 70,000 Overhead 75,000 Production Data: Quantity: Work in Process – Beginning 10,000 Started in Process 30,000 Transferred out to Next Department From Work in Process – Beginning 10000 Started and Completed 18,500 28,500 Work in Process – Ending 10,800 Lost Units – Normal 450 Abnormal Lost Units 250 Stage of Completion: Beginning Ending Transferred In Costs 100% 100% Materials 60% 55% Labor 60% 55% Overhead 60% 55% 1. Referring to Finishing Department, what is the total cost allocated to abnormal spoilage using the weighted-average method? 2.…arrow_forward
- The following information concerns production in the Forging Department for November. All direct materials are placed into the process at the beginning of production, and conversion costs are incurred evenly throughout the process. The beginning inventory consists of $9,000 of direct materials. a. Cost of beginning work in process inventory completed in November. b. Cost of units transferred to the next department during November. c. Cost of ending work in process inventory on November 30. d. Costs per equivalent unit of direct materials and conversion included in the November 1 beginning work in process. If required, round your answers to two decimal places. e. The November increase or decrease in costs per equivalent unit for direct materials and conversion from the previous month. If required, round your answers to two decimal places.arrow_forwardDevelop a cost reconciliation for the assembly department for the month of April.arrow_forwarda. Based upon the data in Exercise 17-7, determine the following for December: 1. Direct materials cost per equivalent unit 2. Conversion cost per equivalent unit 3. Cost of the beginning work in process completed during December 4. Cost of units started and completed during December 5. Cost of the ending work in process b. Assuming that the direct materials cost is the same for November and December, did the conversion cost per equivalent unit increase, decrease, or remain the same in December?arrow_forward
- The following information concerns production in the Forging Department for November. All direct materials are placed into the process at the beginning of production, and conversion costs are incurred evenly throughout the process. The beginning inventory consists of $9,000 of direct materials. Attachment a. Determine the number of units transferred to the next department.b. Determine the costs per equivalent unit of direct materials and conversion.c. Determine the cost of units started and completed in November.arrow_forwardIf a company began the month with 50 units in process, started another 600 units during the month, and ended the month with 75 units in process, how many units were completed?arrow_forwardA process began the month with 3,000 units in the beginning work in process inventory and ended the month with 2,000 units in the ending work in process. If 22,000 units were completed and transferred out of the process during the month, how many units were started into production during the month? Group of answer choices 22,000. 20,000. 23,000. 21,000.arrow_forward
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