Please assits with this cost accounting question Contract Masters Ltd has entered into a contract with Creative Dealers Ltd. for the construction of a new branch office. The contract began on March 1, 2022 and was completed on December 28 2022. The total value of the contract was $12,000,000. On December 30, 2022, an engineer inspected the project and issued a final certificate for work done. The following information is available with regards to the contract: $ Site labour costs 3,120,000 Materials direct to site 2,000,000 Materials returned 30,500 Materials from store and workshops 500,000 Maintenance of plant and use 980,000 Direct expenses 1,090,000 General overheads 750,000 Materials on hand December 31st 100,000 Wages owing at December 31st 200,000 Direct expenses prepaid 150,000 Value of work certified by the engineer 8,000,000 Cash received on account 10,000,000 Required: (a) Prepare the contract account as at December 31st 2022. (b) Prepare the contract P&L account for the year ended December 31st 2022. (c) Prepare the Contractee Account as at December 31st 2022.

Please assits with this cost accounting question Contract Masters Ltd has entered into a contract with Creative Dealers Ltd. for the construction of a new branch office. The contract began on March 1, 2022 and was completed on December 28 2022. The total value of the contract was $12,000,000. On December 30, 2022, an engineer inspected the project and issued a final certificate for work done. The following information is available with regards to the contract: $ Site labour costs 3,120,000 Materials direct to site 2,000,000 Materials returned 30,500 Materials from store and workshops 500,000 Maintenance of plant and use 980,000 Direct expenses 1,090,000 General overheads 750,000 Materials on hand December 31st 100,000 Wages owing at December 31st 200,000 Direct expenses prepaid 150,000 Value of work certified by the engineer 8,000,000 Cash received on account 10,000,000 Required: (a) Prepare the contract account as at December 31st 2022. (b) Prepare the contract P&L account for the year ended December 31st 2022. (c) Prepare the Contractee Account as at December 31st 2022.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 10P

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Please assits with this cost accounting question

Contract Masters Ltd has entered into a contract with Creative Dealers Ltd. for the construction of a new branch office. The contract began on March 1, 2022 and was completed on December 28 2022. The total value of the contract was $12,000,000. On December 30, 2022, an engineer inspected the project and issued a final certificate for work done. The following information is available with regards to the contract:                                                                                 $
Site labour costs                              3,120,000
Materials direct to site                          2,000,000
Materials returned                             30,500
Materials from store and workshops                      500,000
Maintenance of plant and use                       980,000
Direct expenses                          1,090,000
General overheads                               750,000
Materials on hand December 31st                      100,000
Wages owing at December 31st                       200,000
Direct expenses prepaid                  150,000
Value of work certified by the engineer                8,000,000
Cash received on account                      10,000,000

Required:
(a)    Prepare the contract account as at December 31st 2022.
(b)    Prepare the contract P&L account for the year ended December 31st 2022.
(c)    Prepare the Contractee Account as at December 31st 2022.

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