The following are the expenses on a contract which commences on 1st Jan. 2003
Materials purchased $ 100,000
Materials on hand $ 5,000
Direct wages $ 150,000
Plant issued $ 50, 000
Direct expenses $ 80, 000
The contract price was $1,500,000 and the same was duly received when the contract was completed in August 2003.
Required: Charge indirect expenses at 15% on wages. Provide kshs. 10000 for depreciation on plant and prepare the contract account.