9 99 13 99 79 > 93 Illustration 12 (When profits as per financial accounts is given). Following is a summary of the Trading and Profit and Loss Account of Messrs Alpha Manufacturing Co. Ltd. for the year ended 31st March, 2019: $ $ To Material Consumed 27,40,000 By Sales (1,20,000 units) 60,00,000 Wages 15,10,000 Finished Stock (4,000 units) 1,60,000 Factory Expenses 8,30,000 Work-in-Progress : Administration Expenses 3,82,400 Materials 64,000 Selling and Distribution Wages 36,000 Expenses 4,50,000 Factory Expenses 20,000 1,20,000 Preliminary Expenses Dividend Received 18,000 (written off) 40,000 Goodwill (written off) 20,000 Net Profit 3,25,600 62,98,000 62,98,000 The company manufactures a standard unit. In the Cost Accounts: (i) Factory expenses have been recovered from production at 20 per cent on Prime Cost; (ii) Administration expenses at $3 per unit on units produced ; (iii) Selling and distribution expenses at $4 per unit on units sold. You are required to prepare a statement of cost and profit in cost books of the company and to reconcile the profit disclosed with that shown in the Financial Accounts. 79