Contract costing practical problems with solutions pdf
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INTRODUCTION Contract or terminal costing is “A form of specific order costing; attribution of costs to individual contracts”. This method is used in case of Points in Contract Costing, Profit on Incomplete Contracts, Escalation Clause, Cost-plus. Contracts, Problems and Solutions, Examination Questions. 12.2.5 Practical Problems. You have learnt that a job cost sheet is prepared for recording and summarising the cost of materials, labour and overheadsCost of work yet to be certified was INR 60000. PREPARE CONTRACT ACCOUNT AND CONTRACTEE ACCOUNT IN THE BOOKS OF AMBUJA CONSTRUCTION LTD. Solution. Calculate the Value of Work-in-Progress Certified and the amount of Contract. Price. Solution: 1. Since contract is 80% complete, Profit transferred to P & L A/ Solution: First of all prepare the contract account and calculate the notional profit. Then using the formula used to calculate the amount to be 1. If contract price is Rs.3,00,000 · 2. If contract price is Rs.5,50,000 · Step 1: % of work certified = work certified / contract price * 100 · 3. If contract Contract Costing Problem 1: From the following particulars relating to a contract, prepare (a) the Contract Account, (b) Contractee's Account and (c) relevant
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