Graphite Core Industries established in 1995 is globally recognized for producing reliable, high quality wooden pencils. It begins its production…

Graphite Core Industries established in 1995 is globally recognized for producing reliable, high quality wooden pencils. It begins its production process by sourcing raw graphite, clay, and cedar wood slats, holding them as raw materials. The following are details about the manufacturing processes of the company: Core Manufacturing Process - In this process, the graphite and clay are mixed, extruded into rods and fired to create hardened pencil cores known as lead. Simultaneously, the cedar wood is cut into grooved slats. The output of this process i.e. lead and grooved slat is transferred to the Casing & Shaping Process at 30% profit on the transfer price.Casing & Shaping Process In this process, the leads are glued between the grooved slats, shaped into individual pencils and painted. The output of this process i.e. pencils, are then transferred to the Finished Stock at 10% profit on the transfer price. Stock in process is valued at prime cost. The Production manager has provided the following information for the month of April 2026: Particulars Core Manufacturing Process (₹) Casing & Shaping Process (₹) Direct Materials 4,90,000 8,95,000 Direct Wages 3,60,000 9,50,000 Direct Expenses 3,40,000 3,80,000 Factory Overheads 3,00,000 5,00,000 Additional Information: Particulars Opening Stock (₹) Closing Stock (₹) Core Manufacturing Process 5,10,000 2,50,000 Casing & Shaping Process 7,75,000 6,00,000 Finished Stock of Pencils 14,00,000 10,00,000 Finished stock is valued at the price at which it is received from the Casing & Shaping Process. During the month of April 2026, the company sold pencils worth - 75,00,000. Inter process profits included in opening stock for Casing & Shaping Process and Finished Stock are - 75,000 and - 3,20,000 respectively. On the basis of above case scenario for the month of April 2026, you are required to answer the following MCQs 1 to 5: