Magnum Construction Contracted to Construct a Factory Building for $545,000

question 91

Essay

Magnum Construction contracted to construct a factory building for $545,000.The company started during 2012 and was completed in 2013.Information relating to the contract is as follows:
$$\begin{array} { | l | r | r | } \hline & \mathbf { 2 0 1 2 } & \mathbf { 2 0 1 3 } \\\hline \text { Costs incurred during the year } & \mathbf { 1 3 1 0 , 0 0 0 } & \mathbf { 1 1 7 0 , 0 0 0 } \\\hline \text { Estimated additional cost to complete } & 165,000 & \ldots \\\hline \text { Billings during the year } & 280,000 & 285,000 \\\hline \text { Cash collections thring the year } & 260,000 & 305,000 \\\hline\end{array}$$
Required:
Record the preceding transactions in Magnum's books under completed-contract and the percentage of completion methods.Determine amounts that will be reported on the balance sheet at the end of 2012.

Determine the conclusion based on the p-value and the level of significance for hypothesis testing.

Identify the possibility of Type I and Type II errors in hypothesis testing.

Understand the use and interpretation of critical values in hypothesis testing.

Calculate the standard deviation and mean from sample data.

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Definitions:

Cognitive Infocommunications

An interdisciplinary field that focuses on the study and design of systems for human-computer interaction and communication, integrating cognitive science and information communication technologies.

Information Communication Technology

Encompasses all digital technologies that facilitate the capturing, processing, storage, and exchange of information in various formats.

Virtual Reality

A computer-generated simulation of a three-dimensional environment that can be interacted with in a seemingly real or physical way by a person using special electronic equipment.

One-Way Communication

A form of communication where information is transmitted from a sender to a receiver without expecting or receiving any feedback or response.