Laidlow plc is a construction contractor which prepares financial statements to 31 May each year. The following information relates to a contract which began during the year to 31 May 2014 and which was still in progress on that date:

000

Contract price 600

Costs incurred to date:

- for work performed up to 31 May 2014 190

- to acquire inventories for use in future work 30

Estimated further costs to completion 280

Progress billings to date 175

The company's accounting policy is to determine the stage of completion of a contract by comparing the costs incurred for the work performed to date with the estimated total contract costs.

(a) Show how this contract would be reflected in the company's financial statements for the year to 31 May 2014.

(b) How would the accounting treatment differ if the contract price was 480,000 but all of the other figures remained unaltered?