Contract Costing Query

Kanhaiya (Nangia & Co.) (1981 Points)

20 July 2011  

Q1. the cost incuures upto 31.03.2001 was as under:

                              In Lakhs (Rs.)

D.Material             280

D.Labour              100

OH                          60

erection cost to date    110

the contract price is 11 crore and cash received is 6 crore. a technical estimates of the contract indicate the following degree of completion of work:

D. material 70%

D.Labour and OH 60%

Erection 40%

you are required to etimate the profit that could be taken to profit and loss a/c against  this partly completed contract as at 31.03.2001


please help!!!!!!!!!!!