Question

Ans: Profit as per cost accounts 23.063)
7. The Modern Radio Co. which started business on Ist April 2000 sets before you the following information
and asks you to prepare a statement showing profit per radio sold (charging labour and material at the
actual cost, works overhead at 100% on labour and office overhead at 25% on works cost) and a statement
showing Reconciliation in Cost accounts and financial accounts. Profit for the year ending 31st March
2001.
Two grades of radio are manufactured known as Janta and Deluxe. The number of the radio sold was
Janta 160 units and Deluxe 95 units. The other particulars are:
Particulars
Janta (3)
Deluxe (5)
Average Material Cost per radio
28
32
Average Labour Cost per radio
58
Selling price per radio
180
240
The works expenses in financial accounts were 3 16,800 and office expenses were *6.220.

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Answer 1

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