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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:
- Prepare the departmental accounts.
- Calculate the total profit made.
- Assume no opening or closing stock.
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