JUBAIL BUILDERS is constructing a multi-unit residential complex. In the prior year, JUBAIL BUILDERS entered into a contract with a customer for a specific unit that is under construction. JUBAIL has determined that the contract is a single performance obligation satisfied over time. JUBAIL BUILDERS gathered the following information for the contract during the year.

 

JUBAIL BUILDERS-Year Ended December 31, 2018:

Costs to date                                                10,500,000

Future expected costs                                  7,000,000

Work certified to date                                  12,600,000

Expected Sales value                                  22,400,000

Revenue taken in earlier period                    8,400,000

Costs taken in earlier periods                        6,650,000

 

1 . Calculate the amounts to be included in the statement of profit or loss in respect of revenue and costs for the year ended December 31, 2018 on both methods (I) Input Method (cost basis), and (II) Output Method (Sales Basis)

2 . Calculate the total expected profit for the year 2018?

3 . What is the percentage of completion? Note: Under the input method

4 . What amount of gross profit should be shown in the statement of profit for the year using the output method (sales basis)

5 . What amount of gross profit should be shown in the statement of profit for the year using the input method (costs- basis)?