Question

RECONCILIATION OF COST AND FINANCIAL ACCOUNTS
446
1.500
900
80
4,250
(a) Materials per machine
Wages
Number of machine manufactured and sold
Selling price per machine
(b) Works overhead to be charged @ 60% of the wages.
(c) Office overhead to be charged @ 20% of works cost.
There were no stock of machines or work-in-progress at the beginning or at the end of the
period.
Prepare a statement showing the profit per machine sold. Also prepare a statement showing the actual
profit if works expenses were ? 43,000 and office expenses were 48,000 as per the financial records.
You are also required to reconcile the profit as shown by the costing records with that shown by the
financial records.
[Ans. Profit as per cost accounts 57,760; Profit as per financial accounts 57,000.
7. From the following Profit and Loss Account, draw up a Memorandum Reconciliation Account
showing the Profit as per Cost Accounts:
PROFIT AND LOSS ACCOUNT​

Answer 1

Explanation:

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