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- June 6, 2012 at 7:16 am #53147June 2010 Dune Q2 point vi the construction contract part When I include cost of construction contract into cost of sale, instead of 40,000×30%-2,400=9,600 why I cant calculate as below 
 cost to date 8,000
 plant depr 3,000
 Total to COS 11,000I cant think out where I am wrong 🙁 Another qn, for finance cost, why div paid 10,000 cant be included? June 6, 2012 at 10:27 am #99276revenue and costs of a construction contract should be recognised according to the stage of completion of the contract……..IAS 11 
 % of completion given in the qn – 30%.
 Total revenue = 40,000 (given)
 Total costs = 32,000 (see below)in the IS 
 revenue = 30% * 40,000 = 12,000
 cost of sale = 30% * 32,000 = 9,600total costs 
 costs to date = 8,000(given) + plant depn (12,000 – 3,000)*(6/18)
 =11,000
 further costs to complete =15,000(given) + plant depn (12,000 – 3,000)*(12/18)
 =21,000
 total costs = 11,000 + 21,000 = 32,000For the joint stock company, paying dividends is not an expense; rather, it is the division of after tax profits among shareholders….(from Wikipedia) June 6, 2012 at 12:55 pm #99277wow, my mentor, so clear for both, wrote down on my paper. Thank you so much 🙂 
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