The following information is available from the financial books of a company having a normal production capacity of 60, 000 units for the year ended 31st March 2007.
a) Sales Rs.10, 00, 000 [50, 000 units]
b) There was no opening and closing of finished units.
c) Direct material and direct wages cost were Rs.5, 00, 000 and Rs.2, 50, 000 respectively
d) Actual factory expenses were Rs.1, 50, 000 of which 60% are fixed
e) Actual administration expenses were Rs.45, 000, which are completely fixed
f) Actual selling and distribution expenses were Rs.30, 000 out of which, 40% are fixed
g) Interest and dividends received Rs.15, 000.
You are required to,
A. Find out profits as per financial books for the year ended 31st March 2007.
B. Prepare cost sheet and ascertain the profit as per the cost accounts for the year ended 31st March 2007.
C. Prepare a statement reconciling profits shown by financial and cost books.