Surplus on revaluation (Pricewell)

sir, I present you the whole question but it is enough for us to look at the 1st note here The following trial balance relates to Pricewell at 31 March 20X9: $000 $000 Leasehold property – at valuation 31 March 20X8 (note (1)) 25,200 Plant and equipment (owned) – at cost (note (1)) 46,800 Right?of?use assets – at cost (note (1)) 20,000 Accumulated depreciation at 31 March 20X8: Owned plant and equipment 12,800 Right?of?use plant 5,000 Lease payment (paid on 31 March 20X9) (note (1)) 6,000 Lease liability at 1 April 20X8 (note (1)) 15,600 Contract with customer (note (2)) 14,300 Inventory at 31 March 20X9 28,200 Trade receivables 33,100 Bank 5,500 Trade payables 33,400 Revenue (note (3)) 310,000 Cost of sales (note (3)) 234,500 Distribution costs 19,500 Administrative expenses 27,500 Equity dividend paid 8,000 Equity shares of 50 cents each 40,000 Retained earnings at 31 March 20X8 44,100 Current tax (note (4)) 700 Deferred tax (note (4)) 8,400 Total: 469,300 469,300 (1) Non?current assets: The 15?year leasehold property was acquired on 1 April 20X7 at a cost of $30 million. The accounting policy is to revalue the property at fair value at each year end. The valuation in the trial balance of $25.2 million as at 31 March 20X8 led to an impairment charge of $2.8 million which was reported in the statement of profit or loss and other comprehensive income in the year ended 31 March 20X8. At 31 March 20X9 the property was valued at $24.9 million. Owned plant is depreciated at 25% per annum using the reducing balance method. The right?of?use plant was acquired on 1 April 20X7. The rentals are $6 million per annum for four years payable in arrears on 31 March each year. The interest rate implicit in the lease is 8% per annum. Right?of?use plant is depreciated over the lease period. No depreciation has yet been charged on any non?current assets for the year ended 31 March 20X9. All depreciation is charged to cost of sales. (2) On 1 October 20X8 Pricewell entered into a contract to construct a bridge over a river. The performance obligation will be satisfied over time. The agreed price of the bridge is $50 million and construction was expected to be completed on 30 September 20Y0. The $14.3 million in the trial balance is: $000 Materials, labour and overheads 12,000 Specialist plant acquired 1 October 20X8 8,000 Payment from customer (5,700) –––––– 14,300 –––––– The sales value of the work done at 31 March 20X9 has been agreed at $22 million and the estimated cost to complete (excluding plant depreciation) is $10 million. The specialist plant will have no residual value at the end of the contract and should be depreciated on a monthly basis. Pricewell recognises progress towards satisfaction of the performance obligation on the outputs basis as determined by the agreed work to date compared to the total contract price. (3) Pricewell’s revenue includes $8 million for goods it sold acting as an agent for Trilby. Pricewell earned a commission of 20% on these sales and remitted the difference of $6.4 million (included in cost of sales) to Trilby. (4) The directors have estimated the provision for income tax for the year ended 31 March 20X9 at $4.5 million. The required deferred tax provision at 31 March 20X9 is $5.6 million. All adjustments to deferred tax should be taken to the statement of profit or loss. The balance of current tax in the trial balance representsthe under/over provision of the income tax liability for the year ended 31 March 20X8. Based on this info the book calculated cogs like this: Cost of sales $000 Per question 234,500 Contract (W1) 14,000 Agency cost of sales (W2) (6,400) Depreciation (W4) – leasehold property 1,800 – owned plant 8,500 – right?of?use asset (20,000 × 25%) 5,000 Surplus on revaluation of leasehold property (W4) (1,500) ––––––– 255,900 MY QUESTION: I AM ALSO CALCULATE LIKE THIS BUUTT EXCEPTION is RS AMOUNT. I don't get it why surplus amount include in cogs, i never seen before. please clarify in simple way to me. Please explain me simple way