Job costing question

[Neeba]

I would really appreciate the solution to this question. Thanks in advance.

The following data relate to one contract which Jancon Limited has been working on during the year to 30 June 19X4.
Contract M100
Date commenced: 1 July 19X3
Estimated completion date: 31 December 19X4
Contract price
Value of work certified for the year to 30 June 19X4
Amount received from the contractee during the year to 30 June
19X4
Direct materials
Direct labour
Direct expenses
Head office costs
Plant and equipment at book value
Expected value of plant and equipment at 31 December 19X4 Direct materials on site at 30 June 19X4
Expected additional costs to complete the contract:
Direct materials ((including stock at 30 June 19X4)
Direct labour
Direct expenses
£
1296000
972000
800000
200000
490000
100000
32000
50000
5000
5000
65000
54000
45000
Required:
a) Prepare the Contract (M100) Account in the books of Jancon Limited for the year
to 30 June 19X4.
b) Commentontheprudenceoftakinganyprofitonthiscontractasat30June19X4.