Stellar Equipments Pvt. Ltd. manufactures advanced renewable-energy control modules used in solar and wind-power systems. During the financial year…

(i) Statement of Profit as per Financial Records (for the year ended March 31, 2025) Particulars ₹ Particulars ₹ To Opening Stock: By Sales (18,700 units) 26,18,000 Finished Goods 1,31,250 By Closing Stock: Work-in-Process 46,500 Finished Goods 82,160 To Raw Materials Consumed 9,60,000 Work-in-Process 59,400 To Direct Labour 6,10,000 By Rent Received 96,000 To Factory Overheads 3,45,000 By Interest Received 27,000 To Goodwill Written Off 1,20,000 To Administration Overheads 4,10,000 To Selling & Distribution OH 88,000 To Interest Paid 96,000 To Bad Debts 35,000 To Loss on Obsolete Inventory 42,000 To Profit / (Loss) 1,190 (Loss) Total 28,82,560 Total 28,82,560 Statement of Profit as per Costing Records (for the year ended March 31, 2025) Particulars ₹ ₹ Sales Revenue (18,700 units) (A) 26,18,000 Cost of Sales: Opening stock: Finished Goods (1,050 × 125) 1,31,250 Add: Cost of Production of 18,270 units (Working Note 1 & 2) 21,97,278 Less: Closing Stock: 620 units × cost/unit 74,567 Production Cost of Goods Sold 22,53,961 Selling & Distribution Overheads (18,700 × 6) 1,12,200 Cost of Sales (B) 23,66,161 23,66,161 Profit {(A) – (B)} 2,51,839 (ii) Reconciliation Statement (Reconciling Profit as per Cost Accounts with Profit as per Financial Accounts) Particulars ₹ ₹ Profit as per Cost Accounts 2,51,839 Add: Over absorption of selling and distribution overhead (1,12,200-88,000) 24,200 Add: Under valuation of closing stock (82,160 – 74,567) 7,593 Add: Rent Received 96,000 Add: Interest Received 27,000 1,54,793 Less: Under absorption of administrative overhead (4,10,000 - 3,35,178) 74,822 Less: Under absorption of factory overhead (3,45,000 – 3,05,000) 40,000 Less: Goodwill Written Off 1,20,000 Less: Interest Paid 96,000 Less: Bad Debts 35,000 Less: Loss on obsolete inventory 42,000 (4,07,822) Profit/(Loss) as per Financial Accounts (1,190) Working Notes 1. Number of Units Produced Particulars Units Sales 18,700 Add: Closing Stock 620 Total 19,320 Less: Opening Stock 1,050 Number of units produced 18,270 2. Cost Sheet Particulars ₹ Raw Materials Consumed 9,60,000 Direct Labour 6,10,000 Prime Cost 15,70,000 Factory Overheads (50% of Direct Wages) 3,05,000 Factory Cost 18,75,000 Add: Opening Work-in-Process 46,500 Less: Closing Work-in-Process (59,400) Factory Cost of Goods Produced 18,62,100 Administration Overheads (18% of Factory Cost) 3,35,178 Cost of Production of 18,270 units 21,97,278 Cost per unit 21,97,278/18,270 = 120.27