Brady Construction Company contracted to build an apartment complex for a price
ID: 2447703 • Letter: B
Question
Brady Construction Company contracted to build an apartment complex for a price of $6,300,000. 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. Required: 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.)Explanation / Answer
The gross profit (loss) for the year 2016 is as follows:
Situation
Costs incurred
Total costs
% of completion
Revenue
Costs
Gross profit
1
1,630
5,440
29.96
1,888
1,630
258
2
1,630
5,440
29.96
1,888
1,630
258
3
1,630
5,440
29.96
1,888
1,630
258
4
630
5,040
12.50
788
630
158
5
630
5,040
12.50
788
630
158
6
630
6,485
9.71
612
630
-18
The gross profit (loss) for the year 2017 is as follows:
Situation
Costs incurred
Total costs
% of completion
Revenue
Costs
Gross profit
1
2,520
3,810
66.14
4,167
2,520
1,647
2
1,290
4,210
30.64
1,930
1,290
640
3
2,520
5,060
49.80
3,138
2,520
618
4
3,130
4,070
76.90
4,845
3,130
1,715
5
3,130
5,670
55.20
3,478
3,130
348
6
3,130
6,000
52.17
3,287
3,130
157
The gross profit (loss) for the year 2018 is as follows:
Situation
Costs incurred
Revenue
Costs
Gross profit
1
1,290
3,600
1,290
2,310
2
2,920
3,600
2,920
680
3
2,640
3,600
2,640
960
4
1,260
3,600
1,260
2,340
5
2,210
3,600
2,210
1,390
6
3,100
3,600
3,100
500
Situation
Costs incurred
Total costs
% of completion
Revenue
Costs
Gross profit
1
1,630
5,440
29.96
1,888
1,630
258
2
1,630
5,440
29.96
1,888
1,630
258
3
1,630
5,440
29.96
1,888
1,630
258
4
630
5,040
12.50
788
630
158
5
630
5,040
12.50
788
630
158
6
630
6,485
9.71
612
630
-18
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