In the reconciliation between cost and financial accounts, one of the areas of differences is different methods of stock valuation used. State with reasons, in each of the following circumstances whether costing profit will be higher or lower than the financial profit:

Items of stock Cost valuation Financial valuation Rs Rs

(i) Raw material (opening) 50,000 60,000

(ii) Work-in-progress (closing) 60,000 50,000 Cost valuation Financial valuation Rs Rs (iii) Finished stock (closing) 50,000 60,000 (iv) Finished stock (opening) 60,000 50,000