ASSIGNMENT 2
QUESTION 1
JANABIZ Sdn Bhd
Construction in Process account for the year ended 31 December 2012
RM
RM
Material purchased
400,000
plant
10,500
Direct labour paid
250,000
Material transfer to other site
1,000
Sub contractor paid
150,000
prepaid administrative expenses c/d
700
Other direct expenses
25,000
Unused material c/d
4,000
administrative expenses
3,500
material returned to supplier
400
Indirect labour paid
10,000
prepaid indirect labour c/d
500
Hire of crane
8,000
cost of work done to date c/d
882,700
Plant brought to site
20,000
accrued sub contractor expenses c/d
5,000
accrued direct labour c/d
3,000
overhead (W1)
25,300
899,800
899,800
CWDTD b/d
882,700
Contract revenue
916,900
Attributable …show more content…
34,200
916,900
916,900
Unused material b/d
4,000
Accrued Direct labour b/d
3,000
prepaid administrative expenses c/d
700
accrued sub contractor expenses b/d
5,000
prepaid indirect labour b/d
500
plant on side b/d
10,500
W1 : production overhead
=
10% x (direct labour + accrued direct labour)
=
10% x (250000 + 3,000)
=
10% x 253,000
=
25,300
W2 :
estimated total contract cost
=
Cost of work done to date + Future additional contract cost
=
882,700 + 80,000
=
962,700
estimated total profit
=
contract price - total estimated contract cost
=
1,000,000 – 962,700
=
37,300
attributable net profit
=
Cost of work done to date x estimated total profit
Estimated total contract cost
=
882,700
x …show more content…
Contractee Account
Contractee Account
Progress billing