Reference no: EM132848690
Question - Mazdar Construction undertook a contract to build a sport complex at an estimated price of RM10,800,000.00 which includes a budgeted profit of RM1,800,000.00. The following balances were extracted from the books for the year ended 31 March 2020:
RM'000
Materials issued to site 5,000
Wages paid 3,800
Plant hired 700
Site office costs 270
Materials returned from site 100
Direct expenses 500
Work certified 10,000
Progress payment received 7,200
Additional information:
A special plant was purchased specifically for this contract at RM800,000.00. It was valued at RM500,000.00 at the end of the contract.
The cost of materials at site at the end of the year was estimated at RM1,800,000.00. Direct wages accrued as at 31 March 2020 was RM110,000.00.
Required - Prepare contract account for the year ended 31st March, 2020.
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