The financial books of a company reveal the following data for the year ended 31 st March, 2024: (₹) Opening Stock: Finished goods 545 units 48,250…

(i) Statement of Profit as per financial records (for the year ended March 31, 2024) (₹) (₹) To Opening stock of Finished Goods 48,250 By Sales 13,96,500 To Work-in-process 38,000 By Closing stock of finished Goods 44,500 To Raw materials consumed 5,00,000 By Work-in-Process 36,200 To Direct labour 4,20,000 By Interest received 42,000 To Factory overheads 3,56,000 By Loss 3,35,050 To Administration overheads 2,10,000 To Selling & distribution overheads 84,000 To Dividend paid 98,000 To Bad debts 16,000 To Stores adjustment 50,000 To Income tax 34,000 18,54,250 18,54,250 Statement of Profit as per costing records (for the year ended March 31,2024) (₹) Sales revenue (A) (14,250 units) 13,96,500 Cost of sales: Opening stock (545 units x 90) 49,050 Add: Cost of production of 14,165 units (Refer to working note 2) 14,08,560 Less: Closing stock (99.44 x 460 units) 45,742 Production cost of goods sold (14,250 units) 14,11,868 Selling & distribution overheads (14,250 units x 6) 85,500 Cost of sales: (B) 14,97,368 Profit/Loss: {(A) – (B)} (1,00,868) (ii) Statement of Reconciliation (Reconciling the profit as per costing records with the profit as per financial records) (₹) (₹) Loss as per Cost Accounts (1,00,868) Add: Administration overheads over absorbed (₹ 2,34,760 - 2,10,000) 24,760 Opening stock overvalued (₹ 49,050 - 48,250) 800 Interest received 42,000 Selling & distribution overheads over recovered (₹ 85,500 - 84,000) 1,500 69,060 (31,808) Less: Factory overheads over recovered (₹ 3,56,000 -2,52,000) 1,04,000 Closing stock overvalued (₹ 45,742 - 44,500) 1,242 Stores adjustment 50,000 Income tax 34,000 Dividend 98,000 Bad debts 16,000 (3,03,242) Loss as per financial accounts (3,35,050) Working notes: 1. Number of units produced Units Sales 14,250 Add: Closing stock 460 Total 14,710 Less: Opening stock 545 Number of units produced 14,165 2. Cost Sheet (₹) Raw materials consumed 5,00,000 Direct labour 4,20,000 Prime cost 9,20,000 Factory overheads (60% of direct wages) 2,52,000 Factory cost 11,72,000 Add: Opening work-in-process 38,000 Less: Closing work-in-process 36,200 Factory cost of goods produced 11,73,800 Administration overheads (20% of factory cost) 2,34,760 Cost of production of 14,165 units (Refer to working note 1) 14,08,560 Cost of production per unit: (14,08,560 / 14,165) 99.44