Dobson Construction: Percentage of completion on contract
See attached file.
The first problem is to compute the percentage of completion on a 4,000,000 lump-sum contract. Also, need to indicate the amount of gross profit that would be reported on this contract – labor $850,000 – materials and subcontractor 1,750,000 – indirect costs 400,000. Costs incurred to date are labor 464,000, materials and subcontractors 1,098,000- indirect costs 193,000. Included in these costs to date were standard electrical and mechanical materials stored on the job site but not yet installed with a cost of 105,000. According to the instructions these should not be included in the costs incurred to date.