Page 445 - F2 Integrated Workbook STUDENT 2019

Answers

Example 7.8

Step 1 Overall profit/loss on contract

A B C
$000 $000 $000
Contract price 450 378 900

Costs to date (346) (421) (198)

Costs to complete (43) (151) (unknown)
–––– ––––– –––––––
Total estimated profit 61 (194) unknown

Step 2 % completion on output basis

A 338/450 = 75%

B 252/378 = 67%

C 180/900 = 20%

Statement of profit or loss (extract)

A B C

$000 $000 $000
Revenue (% × contract price) 338 252 198
Cost of Sales (% × total cost) (292) (446)β (198)

–––––– –––––– –––––
Gross profit/loss 46 (194) –

437