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A company Alpha Inc. provides the following details for two of its departments for April: Particulars Department X () Department Y () Materials 35,000 --

A company Alpha Inc. provides the following details for two of its departments for April:

Particulars

Department X (₹)

Department Y (₹)

Materials

35,000

--

Labour

55,000

65,000

Overheads

15,000

50,000

Department X transfers its output to Department Y at a price that includes a 15% profit on the transfer price. Department Y transfers its output to the finished stock with a 20% profit on the transfer price. The finished stock was sold for ₹7,00,000.

Requirements:

  1. Prepare the departmental accounts.
  2. Calculate the total profit made.
  3. Assume no opening or closing stock.

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