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[8] 2. a) There is divergence between financial profits and cost profits. Discuss reasons for this divergence with the help of suitable example. b) The
[8] 2. a) There is divergence between financial profits and cost profits. Discuss reasons for this divergence with the help of suitable example. b) The inventory data information related to Edible International Ltd. For the month ending November,2021 is given below: Particulars Inventory Beginning Closing Finished Goods Rs.1,10,000 Rs.95,000 Work-in-progress Rs. 70,000 Rs. 80,000 Raw Material Rs. 90,000 Rs. 95,000 Additional Information: Cost of goods available for sales Rs.6,84,000 Total goods processed during the period Rs.6,54,000 2 Factory Overheads Direct Materials used Rs. 1,67,000 Rs.1,93,000 Requirements: a) Determine raw materials purchased during the year b) Determine direct labour cost incurred during the year c) Determine the cost of goods sold. [3+5=8]
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