Rattan commenced a contract to build an asset for a customer in the year ended 30 September 20X4. The contract price was agreed at 1.5 million, and the total expected costs of the contract are 800,000. Rattan will satisfy the performance obligations over time.

The following figures are relevant in relation to this contract for the year ended 30 September:

	20X4	20X5
	'000	'000
Costs incurred to date	325	575
Work certified to date	450	1,050

Rattan recognises progress on the basis of work certified compared to contract price.

What should Rattan include in its statement of profit or loss for the year ended 30 September 20X5 for cost of sales in respect of the contract in accordance with IFRS 15 'Revenue from Contracts with Customers'?

Question 10Select one:

a.

320,000

b.

560,000

c.

250,000

d.

240,000