Question

Contract completed is 3\4.Work certified is 1\2 of contract price.Cost of 3\4 work is 3,00, 000.Calculate the cost of work uncertified.

Answer 1

The cost of work uncertified is 200,000

Explanation:

Computing the cost of work done in 1 as:

Value of 3/4 work completed = 300,000

For 1

Value of 1 work completed = 300,000 × 4/ 3

Value of 1 work completed = 100,000 × 4

Value of 1 work completed = 400,000

So, 1/2 work is certified as computed as:

Value of work certified = 400,000 × 1/2

Value of work certified = 200,000

Now, computing the cost of work uncertified as the formula:

Income on a Contract = Value of Work Certified + Cost of Work Uncertified

So,

Cost of work uncertified = Income on a contract - Value of work certified

where

Income on a contract is 400,000

Value of work certified is 200,000

putting the valued above:

Cost of work uncertified = 400,000 - 200,000

Cost of work uncertified = 200,000