Reference no: EM133085729
Question - GIRANG Construction Bhd. is a contractor for the construction of office buildings in Kuala Ketil. At the beginning of the year 2018, the company began constructing 3 different buildings at different places. The following data describes the status of these building at the end of year 2018.
|
|
A1
|
A2
|
A3
|
|
Contract Price (RM'000)
|
4,000
|
9,000
|
13,150
|
|
Costs incurred to date (RM'000)
|
2,070
|
6,318
|
3,000
|
|
Estimated Costs to complete (RM'000)
|
1,380
|
1,782
|
9,000
|
During the year 2019, the company incurred the following costs for particular building:
A1 RM930,000 (estimated costs to complete RM750,000)
A2 RM1,800,000 (Job were completed)
A3 RM7,400,000 (estimated costs to complete RM2,800,000)
Required - Calculate the stage of completion of for all construction contracts above for both year 2018 and 2019. Assume the company practice the cost-to-costs percentage of completion method.
Calculate the total revenues, total costs and gross profit for the year 2018 and 2019.