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Calculate the amount of contract revenue

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Reference no: EM133030412

Question - Sun Builder's principal activity is in construction and development of houses for the middle income group. As at 31 March 2012, the company has three uncompleted contracts, whose performance obligations are satisfied over time.

Sun calculates satisfaction of performance obligations based on costs incurred as a percentage of total costs.

CONTRACT 1 RM'000 CONTRACT 2 RM'000 CONTRACT 3 RM'000

Contract value/price 18000 20000 7500

Cost incurred as at 31/3/12 10500 13000 5800

Included in the above costs incurred are:

Materials for future work 400 200

Advance payments to subcontractors 1100 1000

Estimated costs to completion 3000 3000 3200

Required -

(a) Calculate the stage of completion of each of the contract as at 31 March 2012.

(b) Calculate the amount of contract revenue, costs, profit or loss for each contract that should be recognised in the statement of profit and loss for the financial period ended 31 March 2012.

Reference no: EM133030412

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