LTCC FORMULA AND NOTES

Question 1

Total Estimated Cost

Answer 1

Cost incurred to date
+ Estimated cost to complete
_______________________
Total Estimated Cost

Question 2

POC%

Answer 2

Cost Incurred * Construction In Progress
___________________ or ______________________
Total Estimated Cost Contract Price

• use only if there is profit cant use if lost

Question 3

Revenue

Answer 3

POC% x CP

Question 4

Estimated Gross Profit

Answer 4

(POC% x CP) - Cost Incurred

Question 5

cumulative Realized Gross Profit

Answer 5

CP - Total Estimated Cost

Question 6

NOTES

Answer 6

Cumulative RGP if first year yun na yon agad. pero pag second year always deduct first yr. kung loss ang last yr magiging negative negative then positive lol algebra

Question 7

CIP

Answer 7

Cost Incurred
\+
_ G/L
\_\_\_\_\_\_\_\_\_\_\_\_\_\_
    CIP

Question 8

EXPENSED OUTRIGHT

Answer 8

CP < Total Cost