Metvon Ltd has a number of contracts in progress at its year end 31 December 2012. Details of two of these are given below:

Both contracts were started in the current year.
The company uses the stage of completion method, and all costs and outstanding billings invoiced are regarded as recoverable.
Metvon can estimate reliably the outcome of contracts once they are \(40 \%\) complete.
\section*{Required}
Calculate the amounts to appear in the statement of comprehensive income of Metvon Ltd for the year to 31 December 2012, and the statement of financial position as at that date (disclosure notes are not required).

Transcribed Image Text:

Contract 1 Contract 2 000 000 Contract price 16,000 36,000 Progress billings invoiced 6,300 21,400 Progress billings received 4,850 20,000 Costs incurred to date 4,300 25,000 Estimated costs to complete 10,100 13,000 % completion 30% 65%