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F2: Advanced Financial Reporting
CHAPTER 10 – CONSTRUCTION CONTRACTS
The following data relates to the next 2 questions.
A construction contract has commenced during the year ended 30th June 20X9. The
following figures relate to its current position:
$
Contract price 800,000
Cost incurred to date 470,000
Expected costs to complete 560,000
Work certified as completed 45%
Progress billings to date 400,000
The company uses the work certified basis for determining the stage of completion.
10.1 What amounts will be shown for revenue and cost of sales within the
statement of P/L for the year ended 30th June 20X9?
A Revenue $360,000, Cost of sales $463,500
B Revenue $360,000, Cost of sales $590,000
C Revenue $800,000, Cost of sales $470,000
D Revenue $800,000, Cost of sales $1,030,000
10.2 What amounts will be shown on the statement of financial position for
gross amounts owed to/from customers as at the year ended 30th June
20X9?
A Amounts owed from customers $300,000
B Amounts owed from customers $400,000
C Amounts owed to customers $33,550
D Amounts owed to customers $160,000
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