Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Samuel Construction Company engaged in a contract to construct a building on 1 July 2011 with completion of the contract by the 30 June 2014. The contract price amounted to a total of $3 600 000. Total estimated costs to build the building were $3 200 000 at the commencement of the contract. The company has a June 30 year end. The following information relates to construction during the period of the contract:
Year End
30 June 2012
$
30 June 2013
30 June 2014
Costs incurred during the year
800 000
1 000 000
1 700 000
Estimated costs to complete
2 400 000
1 600 000
-
Progress billings during the year
720 000
1 920 000
960 000
Cash collected during the year
600 000
1 200 000
Required:
Assuming that the contract outcome can be reliably measured and as a result Samuel Construction Company adopts the percentage of completion (cost basis method):
(i) Calculate the amount of gross profit that should be recognised for years ending 30 June 2012, 30 June 2013 and 30 June 2014. Show all workings.
(ii) Calculate the amount of revenue that should be recognised for years ending 30 June 2012, 30 June 2013 and 30 June 2014. Show all workings.
(iii) Prepare the necessary journal entries for the year ending 30 June 2013.
Note: For the percentage-of-completion calculation, round to the second decimal place (eg 41.75%). Round any currency calculations to the nearest whole dollar.
Now assume that it is possible to distinguish consumer types one and two and there are no consumers of type three and the firm can charge a two part tariff. What would the optimal
Break-Even Calculations As they say, a picture is significance a thousand words, and this is undoubtedly true for the CVP graphic just presented. Though, everyone is not an art
Bull Bay Ltd. Manufacturers two types of surfboard, "Winner" and "Surf King", whose selling prices are $300 and $900 respectively. Each surfboard passes through two manufacturing d
on the first day of the current fiscal year $2,000,000 of 10 year 7% bonds with interest payable annually, were sold for $2,125,000. Present enteries to record the following transa
Planned Actual Production 92,000 units 87,000 units
WHAT IS COST BOOK KEEPING?
according to a factory cost ledger, job no 51 has incurred the following costs: direct material - 30
Types of Standard Costs The standard cost set could be ideal, basic, attainable or current. i. Basic Standards: These are long term standards that would keep unchanged ov
What are the dependent and independent variables in Cost Accounting??
Shubenacadie Inc. is currently considering a project with a 5-year life that it believes has the potential to return the company to profitability. Based on the results from a marke
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd