JUBAIL BUILDERS  is constructing a multi-unit residential complex.  In the prior year, JUBAIL BUILDERS entered into  a contract with a customer  for a specific unit that is  under construction.  JUBAIL has determined that the contract is a single performance obligation satisfied over time.  JUBAIL BUILDERS  gathered the following information for the contract during the year.   JUBAIL BUILDERS-Year Ended December 31, 2018: Costs to date 10,500,000 Future expected costs 7,000,000 Work certified to date 12,600,000 Expected Sales value 22,400,000 Revenue taken in earlier period 8,400,000 Costs taken in earlier periods 6,650,000 Calculate the amounts to be included in the statement of profit or loss in respect of revenue and costs for the year ended December 31, 2018 on both methods (I) Input Method (cost basis), and (II)  Output Method (Sales Basis) Calculate the total expected profit for the year 2018?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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  1. JUBAIL BUILDERS  is constructing a multi-unit residential complex.  In the prior year, JUBAIL BUILDERS entered into  a contract with a customer  for a specific unit that is  under construction.  JUBAIL has determined that the contract is a single performance obligation satisfied over time.  JUBAIL BUILDERS  gathered the following information for the contract during the year.

 

JUBAIL BUILDERS-Year Ended December 31, 2018:

Costs to date

10,500,000

Future expected costs

7,000,000

Work certified to date

12,600,000

Expected Sales value

22,400,000

Revenue taken in earlier period

8,400,000

Costs taken in earlier periods

6,650,000

Calculate the amounts to be included in the statement of profit or loss in respect of revenue and costs for the year ended December 31, 2018 on both methods (I) Input Method (cost basis), and (II)  Output Method (Sales Basis)

Calculate the total expected profit for the year 2018?

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