The financial books of a company reveal the following data for the year ended 31st March, 2023: (₹) Opening Stock: Finished goods 875 units 76,525…

Statement of Profit as per financial records (for the year ended March 31, 2023) (₹) (₹) To Opening stock: By Sales 20,80,000 Finished goods 76,525 By Closing stock: Work-in-process 33,000 Finished Goods 43,250 To Raw materials consumed 7,84,000 Work-in-Process 48,200 To Direct labour 4,65,000 By Rent received 72,000 To Factory overheads 2,65,000 By Interest received 18,500 To Goodwill written off 95,000 To Administration overheads 3,15,000 To Selling & distribution overheads 65,000 To Income tax paid 72,000 To Bad debts 21,000 To Profit 70,425 22,61,950 22,61,950 Statement of Profit as per costing records (for the year ended March 31,2023) (₹) (₹) Sales revenue (14,500 units) (A) 20,80,000 Cost of Sales: Opening stock (875 units x 105) 91,875 Add: Cost of production of 14,000 units (Refer to Working Note 1& 2) 18,15,360 Less: Closing stock (18,15,360 × 375 units / 14,000 units) (48,626) Production cost of goods sold (14,500 units) 18,58,609 Selling & distribution overheads (14,500 units x 5) 72,500 Cost of sales: (B) 19,31,109 19,31,109 Profit: {(A) – (B)} 1,48,891 Workings: 1. Number of units produced Units Sales 14,500 Add: Closing stock 375 Total 14,875 Less: Opening stock 875 Number of units produced 14,000 Cost Sheet (₹) (₹) Raw materials consumed 7,84,000 Direct labour 4,65,000 Prime cost 12,49,000 Factory overheads (60% of direct wages) 2,79,000 Factory cost 15,28,000 Add: Opening work-in-process 33,000 Less: Closing work-in-process (48,200) Factory cost of goods produced 15,12,800 Administration overheads (20% of factory cost) 3,02,560 Cost of production of 14,000 units 18,15,360 Cost of production per unit: Total Cost of Production / No. of units produced = 18,15,360 / 14,000 units = 129.67 Statement of Reconciliation (Reconciling the profit as per costing records with the profit as per financial records) (₹) (₹) Profit as per Cost Accounts 1,48,891 Add: Factory overheads over absorbed (₹ 2,79,000 - 2,65,000) 14,000 S & D overheads over absorbed (₹ 72,500 -65,000) 7,500 Opening stock overvalued (₹ 91,875 - 76,525) 15,350 Interest received 18,500 Rent received 72,000 1,27,350 2,76,241 Less: Administration overheads under recovery (₹ 3,15,000 - 3,02,560) 12,440 Closing stock overvalued (₹ 48,626 - 43,250) 5,376 Goodwill written off 95,000 Income tax paid 72,000 Bad debts 21,000 2,05,816 Profit as per financial accounts 70,425