40,000 50 Profit added by Deptt. A 36,300 x = 2,100 150 Clarification: Cost increased during the current period by Deptt. B are Direct Material 12,000, Wages 10,000 and Transfer received from Deptt. A 18,000 Total 40,000. 18.000 So, cost element of Deptt. A 18,000 in closing stock is 340,000 (FIFO formula for stock issue is assumed) Deptt. C: Closing Stock 8,000 10 Profit added by Deptt. B: 38,000 = 727 110 Cost element from Deptt. A: 18,000 (8,000 - 727) = 3.273 340,000 i46 50 Profit added by Deptt. A: 33,273 x 1.091 150 1.818 Total Unrealised Profit: 2,100 + 1,818 = 3,918 Illustration 4 M/S X has two departments, A and B. From the following particulars prepare the consolidated Trading Account and Departmental Trading Account for the year ending 31st December, 2012 B 12,000 Opening Stock (at cost) 20,000 12,000 Purchases 92,000 68,000 Sales 1,40,000 1,12,000 Wages 8,000 Carriage 2,000 2,000 Closing Stock: (0) Purchased goods 4,500 6,000 ci Finished goods 24,000 14,000 Purchased goods transferred: by B to A 10,000 by A to B 8,000 Finished transferred: by A to B 35,000 by B to 40,000 Return of f finished goods: 10,000 by B to A 7,000 You are informed that purchased goods have been transferred mutually at their respective departmental purchase cost and finished goods at departmental market price and that 20% of the finished stock (closing) at each department represented finished goods received from the other department goods by A to B