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- This topic has 1 reply, 2 voices, and was last updated 9 years ago by MikeLittle.
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- April 25, 2014 at 9:14 pm #166332
Sir, could you kindly explain how to do below example 1 (Lily) from Technical Article with the method presented in your lectures?
Progress payments 1,400
Contract price 2,736
Work certified complete 1,824
Contract costs incurred to
31 December 2008 2,160
Estimated total cost at
31 December 2008* 2,520The working for SoFP is same technique as in article
Cost YearToDate
+ recognised profit
– amount invoiced (which i assume is another meaning of progress payments)but i cannot do the recognised profit for SoPL.
Im pretty much stuck with having a good approach to calculation since two evenings.
P.S.
On the other hand I was trying to do example 3 from your lectures with the technique presented in Technical Article but i couldnt get to Profit of 10.April 26, 2014 at 7:57 am #166356Contract is 2/3 complete
W1
2/3 x contract value 1,824
2/3 x total costs 1,680
Profit recognised 144W2
Costs to date 2,160
Attributable profit (W1) 144
2,304
Amounts invoiced 1,400
Amount due from customers 904Did I get it right?
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