Example of anticipated Contract Loss

Example of Anticipated Contract Loss
Material Issued			50,000
Labour			40,000
Plant value Begning			100,000
Ovehreads			40,000
Matrial at Site			5,000
Plant at Closing			80,000
Toal estimated Cost			230,000
Contract Price			190,000
Work Certified			120,000
Solution
Contract Cost Profit & Loss
Work Certified			120,000
Material Used	(50,000-5000)		45,000
Labour			40,000
Plant value Begning	(100,000-80,000)		20,000
Ovehreads			40,000
Less: Cost of Good Sold			145,000
Loss for the year			(25,000)
Total Loss
Loss for the year			(25,000)
Future Loss			(15,000)
Total Loss	(230,000-190,000)		(40,000)