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Question - Bellamy has a three-year contract which commenced on 1 January 2020. As at 31 December 2020 Bellamy extracted the following balances from its ledger relating to the contract:
RM'000
Total contract value
140,000
Cost incurred up to 31 December 2019:
Attributable to work completed
52,000
Inventory purchased for use in future years
8,000
60,000
Progress billing to date
45,000
Cash received
26,500
Other information:
Expected further costs to completion
48,000
As at 31 December 2020, the contract was certified as 40% complete.
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