Prepare Contract Account No. 18 for the year ended 31 March 2026, including calculations for total costs and closing balances for direct labour and plant depreciation.

Here are the solutions to your contract costing questions:

a) Prepare Contract Account No. 18 for the year ended 31 March 2026.

Step 1: Calculate total costs incurred and closing balances.

• Total Direct Labour Costs = Direct labour costs paid + Direct labour costs accrued $$= 420,000 + 18,000 = 438,000$$
• Plant Depreciation = Plant transferred to site at cost - Plant written-down value at 31 March 2026 $$$$