ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.28 : In the development of a small engineering facility for biochemical processing, completed contract method is applied in its construction accounting. In a short contract period, let the (contract price) = A. Let the (costs to date) = B; (estimated cost to complete) = C. (a) Find the values of : (i) estimated total costs; (ii) total estimated profit; (iii) percent completion to date. (b) If the project contract is 100 % completed : (i) find the total gross profit recognized; (ii) what is the exact numerical value of C?
ACCOUNTING AND FINANCIAL ENGINEERING - ANSWER 34.28 : (a)(i) Cost = B + C. (ii) Profit = A - (B + C). (iii) Percent = (100) B / (B + C). (b)(i) Profit = A - (B + C). Profit = A - B when C = 0. (ii) C = 0. The answer is given by Kang Chuen Tat; PO Box 6263, Dandenong, Victoria VIC 3175, Australia; SMS +61405421706; chuentat@hotmail.com; http://kangchuentat.wordpress.com.
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In a triple effect evaporator, the heat transfer for an evaporator is calculated as q = UA (TI – TF) where TI is the initial temperature, TF is the final temperature; U and A are constants. Given that heat transfer for the first evaporator : q(1) = UA (TI – TB); second evaporator : q(2) = UA (TB – TC); third evaporator : q(3) = UA (TC – TF) where q(x) is the heat transfer function, TB is the temperature of second inlet and TC is the temperature of third inlet, prove that the overall heat transfer Q = q(1) q(2) q(3) = UA (TI – TF).
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