Technological Institute of the Philippines

1338 ARLEGUI ST., SAN MIGUEL, MANILA, 1005, METRO MANILA

COLLEGE OF ENGINEERING

CIVIL ENGINEERING DEPARTMENT

CONSTRUCTION COST ENGINEERING

ASSIGNMENT 6

Submitted by

PLATOON N. BEJER

Submitted to

ENGR. RAMON ESPIRITU JR.

June 14, 2021

 PROBLEM 1

Determine the Following using the Job Data in the Table:

a. Current contract price

b. Credit or debit to date

c. Contract value of uncompleted work

d. Credit or debit to come

e. Estimated final gross profit

f. Estimated total project costs

g. Estimated Profit to date

Status of Jobs
Job 5 ($) Job 6 ($)
Underway
Original Contact price 3800 5630

Contract Changes 600 -300

Total Cost to Date 1710 620

Payments received or due
1830 340
to date
Estimated cost to
2300 5000
complete

CEM 303 1
Construction Cost Accounting 7
CCE
 SOLUTION FOR JOB 5

Status of Jobs Underway Job 5

Original Contact price 3800
Contract Changes 600
Total Cost to Date 1710
Payments received or due to date 1830
Estimated cost to complete 2300

a. CURRENT CONTRACT PRICE

Current Contract Price = Original Contract Price + Contract Changes

𝐂𝐮𝐫𝐫𝐞𝐧𝐭 𝐂𝐨𝐧𝐭𝐫𝐚𝐜𝐭 𝐏𝐫𝐢𝐜𝐞 = $3,800 + $600 = $𝟒, 𝟒𝟎𝟎

b. CREDIT OR DEBIT TO DATE

Credit or Debit to date

= Total costs to date − Payments received or due

𝐂𝐫𝐞𝐝𝐢𝐭 𝐨𝐫 𝐃𝐞𝐛𝐢𝐭 𝐭𝐨 𝐝𝐚𝐭𝐞 = $1,710 − $1,830 = −$𝟏𝟐𝟎

c. CONTRACT VALUE OF UNCOMPLETED WORK

Contract Value of Uncompleted Work

= Current Contract Price − Payments received or due

𝐂𝐨𝐧𝐭𝐫𝐚𝐜𝐭 𝐕𝐚𝐥𝐮𝐞 𝐨𝐟 𝐔𝐧𝐜𝐨𝐦𝐩𝐥𝐞𝐭𝐞𝐝 𝐖𝐨𝐫𝐤 = $4,400 − $1,830 = $𝟐, 𝟓𝟕𝟎

CEM 303 2
CONSTRUCTION COST ACCOUNTING 7
CCE
d. CREDIT OR DEBIT TO COME

Credit or Debit to come

= Contract Value of Uncompleted Work
− Estimated Cost to Complete

𝐂𝐫𝐞𝐝𝐢𝐭 𝐨𝐫 𝐃𝐞𝐛𝐢𝐭 𝐭𝐨 𝐂𝐨𝐦𝐞 = $2,570 − $2,300 = $𝟐𝟕𝟎

e. ESTIMATED FINAL GROSS PROFIT

Estimated Final Gross Profit

= Credit or Debit to date + Credit or Debit to come

𝐄𝐬𝐭𝐢𝐦𝐚𝐭𝐞𝐝 𝐅𝐢𝐧𝐚𝐥 𝐆𝐫𝐨𝐬𝐬 𝐏𝐫𝐨𝐟𝐢𝐭 = −$120 + $270 = $𝟏𝟓𝟎

f. ESTIMATED TOTAL PROJECT COST

Estiamted Total Project Cost = Contract Price − Gross Profit

𝐄𝐬𝐭𝐢𝐦𝐚𝐭𝐞𝐝 𝐓𝐨𝐭𝐚𝐥 𝐏𝐫𝐨𝐣𝐞𝐜𝐭 𝐂𝐨𝐬𝐭 = $4,400 − $150 = $𝟒, 𝟐𝟓𝟎

g. ESTIMATED PROFIT TO DATE

Estiamted Profit to date

= Estimated final gross profit
× Proportion of work completed

$1,710
𝐄𝐬𝐭𝐢𝐦𝐚𝐭𝐞𝐝 𝐓𝐨𝐭𝐚𝐥 𝐏𝐫𝐨𝐣𝐞𝐜𝐭 𝐂𝐨𝐬𝐭 = $150 × ( ) = $𝟔𝟎. 𝟑𝟓𝟑
$4,250
CEM 303 3
CONSTRUCTION COST ACCOUNTING 7
CCE
 SUMMARY OF ANSWERS FOR JOB 5

Variable Value ($)

Current Contract Price 4,400
Credit or Debit to date -120
Contract Value of 2,570
Uncompleted Work
Credit or Debit co come 270
Estimated Final Gross Profit 150
Estimated Total Project Costs 4,250
Estimated Profit to date 60.353

CEM 303 4
CONSTRUCTION COST ACCOUNTING 7
CCE
 SOLUTION FOR JOB 6

Status of Jobs Underway Job 6

Original Contact price 5630
Contract Changes -300
Total Cost to Date 620
Payments received or due to date 340
Estimated cost to complete 5000

a. CURRENT CONTRACT PRICE

Current Contract Price = Original Contract Price + Contract Changes

𝐂𝐮𝐫𝐫𝐞𝐧𝐭 𝐂𝐨𝐧𝐭𝐫𝐚𝐜𝐭 𝐏𝐫𝐢𝐜𝐞 = $5,630 + (−$300) = $𝟓, 𝟑𝟑𝟎

b. CREDIT OR DEBIT TO DATE

Credit or Debit to date

= Total costs to date − Payments received or due

𝐂𝐫𝐞𝐝𝐢𝐭 𝐨𝐫 𝐃𝐞𝐛𝐢𝐭 𝐭𝐨 𝐝𝐚𝐭𝐞 = $620 − $340 = $𝟐𝟖𝟎

c. CONTRACT VALUE OF UNCOMPLETED WORK

Contract Value of Uncompleted Work

= Current Contract Price − Payments received or due

𝐂𝐨𝐧𝐭𝐫𝐚𝐜𝐭 𝐕𝐚𝐥𝐮𝐞 𝐨𝐟 𝐔𝐧𝐜𝐨𝐦𝐩𝐥𝐞𝐭𝐞𝐝 𝐖𝐨𝐫𝐤 = $5,330 − $340 = $𝟒𝟗𝟗𝟎

CEM 303 5
CONSTRUCTION COST ACCOUNTING 7
CCE
d. CREDIT OR DEBIT TO COME

Credit or Debit to come

= Contract Value of Uncompleted Work
− Estimated Cost to Complete

𝐂𝐫𝐞𝐝𝐢𝐭 𝐨𝐫 𝐃𝐞𝐛𝐢𝐭 𝐭𝐨 𝐂𝐨𝐦𝐞 = $4,990 − $5,000 = −$𝟏𝟎

e. ESTIMATED FINAL GROSS PROFIT

Estimated Final Gross Profit

= Credit or Debit to date + Credit or Debit to come

𝐄𝐬𝐭𝐢𝐦𝐚𝐭𝐞𝐝 𝐅𝐢𝐧𝐚𝐥 𝐆𝐫𝐨𝐬𝐬 𝐏𝐫𝐨𝐟𝐢𝐭 = $280 + (−$10) = $𝟐𝟕𝟎

f. ESTIMATED TOTAL PROJECT COST

Estiamted Total Project Cost = Contract Price − Gross Profit

𝐄𝐬𝐭𝐢𝐦𝐚𝐭𝐞𝐝 𝐓𝐨𝐭𝐚𝐥 𝐏𝐫𝐨𝐣𝐞𝐜𝐭 𝐂𝐨𝐬𝐭 = $5,330 − $270 = $𝟓, 𝟎𝟔𝟎

g. ESTIMATED PROFIT TO DATE

Estiamted Profit to date

= Estimated final gross profit
× Proportion of work completed

$620
𝐄𝐬𝐭𝐢𝐦𝐚𝐭𝐞𝐝 𝐓𝐨𝐭𝐚𝐥 𝐏𝐫𝐨𝐣𝐞𝐜𝐭 𝐂𝐨𝐬𝐭 = $270 × ( ) = $𝟑𝟑. 𝟎𝟖𝟑
$5,060
CEM 303 6
CONSTRUCTION COST ACCOUNTING 7
CCE
 SUMMARY OF ANSWERS FOR JOB 6

Variable Value ($)

Current Contract Price 5,330
Credit or Debit to date 280
Contract Value of 4,990
Uncompleted Work
Credit or Debit co come -10
Estimated Final Gross Profit 270
Estimated Total Project Costs 5,060
Estimated Profit to date 33.083

I affirm that I shall not give or receive any unauthorized help on this assignment and
that all work shall be my own

PLATOON N. BEJER

CEM 303 7
CONSTRUCTION COST ACCOUNTING 7
CCE