FR SEPT/DEC Pass year 2018

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February 1, 2019 at 7:55 am #503834
chuajasmine98
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Hi sir,may I know how to calculate question 32)i) for the working 1 contract
Revenue 2,700 (80% x $9m = $7·2m. As $4·5m (50%) in X7, X8 = $2·7m)
COS 1,500 (80% x $5m = $4m. As $2·5m (50%) in X7, X8 = $1·5m)
I dont understand how to calculate the 4.5m in X7 and X8= 2.7m
Hopefully Sir can reply me thanks .
February 2, 2019 at 2:40 pm #503937
P2-D2
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Hi,
Yes, the contract was 50% complete at the beginning of the year, so we would have recognised 50% of the revenue and the costs. The total revenue is $9m, so half of this is $4.5m, and half of the total costs of $5m are $2.5 m.
Hope that clears it up for you.
Thanks
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