Alternative Power Solutions Ltd ('APS') is a firm of building contractors specializing in the construction of offshore wind farms. At 31 December 2012 the company had three contracts in progress: North Shores, Western Beaches and Philorth Flats. North Shores was started during the year ended 31 December 2011, and Western Beaches and Philorth Flats were started during the year ended 31 December 2012.

Details of the contracts are as follows:

Percentage complete is based upon surveyors' valuations. APS can estimate reliably the outcome of contracts once they are \(30 \%\) complete.
\section*{Required}
(1) Calculate, showing all workings, the amounts to be included in the financial statements for APS Ltd for the year ended 31 December 2012, in respect of each of the contracts for:
(i) turnover (ii) cost of sales (iii) trade receivables, and (iv) gross amount due from customers or due to customers for contract work.

(b) Prepare the relevant statement of comprehensive income and statement of financial position extracts for the year ended 31 December 2012.

Transcribed Image Text:

Contract value Agreed variation Progress billings (cumulative) North North Western Philorth Shores Shores Beaches Flats 31/12/11 31/12/12 31/12/12 31/12/12 000 000 000 000 250 250 320 420 30 Progress billings invoiced Progress billings received Costs to date (cumulative) Materials Labour Production overhead 440 250 240 260 340 200 210 340 100 84 69 20 54 71 10 80 82 80