Archive | Contract Costing

How to Record Costs, Value and Profit on Contracts?

In this article we will discuss about the procedure for recording of costs, value and profit on contracts. Recording of Costs of a Contract: The following is the recording procedure for different costs relating to a contract: 1. Materials: Contract Account is debited with the following, relating to materials: (a) Materials specially purchased and sent to contract site. (b) Materials [...]

By |2018-06-18T11:02:01+00:00June 18, 2018|Contract Costing|Comments Off on How to Record Costs, Value and Profit on Contracts?

How to Calculate Profit or Loss on Contracts? (With Formula)

In this article we will discuss about the calculation of profit or loss on contracts. (a) Completed Contracts: When a contract is completed, the overall profit or loss on the contract is transferred to the profit & Loss Account fully. (b) Incomplete Contracts: When there is loss on an incomplete contract, it is fully transferred to the profit and loss [...]

By |2018-06-18T11:02:01+00:00June 18, 2018|Contract Costing|Comments Off on How to Calculate Profit or Loss on Contracts? (With Formula)

Contract Costing: Meaning, Features and Procedure | Cost Accounting

In this article we will discuss about:- 1. Meaning and Definition of Contract Costing 2. Features of Contract Costing 3. Procedure 4. Computation of Profit or Loss 5. Cost Plus Method 6. Important Matters to be taken into Considerations. Contents: Meaning and Definition of Contract Costing Features of Contract Costing Contract Costing Procedure Computation of Profit or Loss on Contract [...]

By |2018-03-21T06:06:51+00:00March 21, 2018|Contract Costing|Comments Off on Contract Costing: Meaning, Features and Procedure | Cost Accounting
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