By Sales c19 Particulars Sona Mona Dona Particulars Sona Mona Dona To Opening Stock (Note 1) Sona (450 x 32) 14,400 Sona (4,100 x 48) 1,96,800 Mona (300 x 36) 10,800 Mona (7,700 x 54) 4,15,800 Dona (600 x 40) 24,000 Dona (10,000 x 60) 6,00,000 To Cost of Production: By Closing Stock: Sona (4,000 x 32) 1,28,000 Sona (350 x 32) 11,200 Mona (8,000x36) 2,88,000 Mona (600x +36) 21,600 Dona (9,600 x 40) 3,84,000 Dona (200x240) 8,000 To Department Gross Profit (33/3 of Sales) 65,600 1,38,600 2,00,000 2,08,000 4,37,400 6,08,000 2,08,000 4,37,400 6,08,000 Tutorial Note: Departmental expenses of 96,000 should not be charged to Trading Account, because they are not directly related with production. However, for the purpose of determining departmental net profit, these expenses are to be charged to: Sona-319.200; Mona 38,400; and Dona-338,400. The resultant profits will be: Sona -46,400; Mona- 1,00,200; and Dona - 1,61,600. Working Notes: For the purpose of calculating G.P. ratio, the cost of production to be deducted from the sale value of goods produced only (1) Calculation of Rate of Gross Profit and Cost of Production Sales value of goods produced: Sona : 4,000 X 48 1,92,000 Mona : 8,000 x 54 4,32,000 Dona: 9,600 x 360 5,76,000 12,00,000 Less: Total cost of production 8,00,000 Expected Gross Profit 4,00,000 (a) Rate of gross profit = 4,00,000 - x 100 = 33% (on sales) 12,00,000 (b) Respective departmental cost prices (i.e., Sales price less 33'3%): Sona : 3 48 -16=32Mona : 354 - 18 = 36; and Dona : 60 - 20 = 40. (2) Calculation of Number of Units Unsold Department Opening Stock Production Sales Closing Stock Sona (units) 450 4,000 4,100 350 Mona (units) 300 8,000 7,700 600 Dona (units) 600 9,600 10,000 200 Assumption : Cost of production and sales prices are constant for the last 2 years. Illustration 4 Brahma Limited has three departments and submits the following information for the year ending on 31st March, 2018 : Particulars B Total) Purchases (units) 5,000 10,000 15,000 Purchases (Amount) 8,40,000 Sales (units) 5,200 9,800 15,300 Selling price per unit) 40 45 50 Opening stock (units) 400 600 700 You are required to prepare Departmental Trading Account of Brahma Limited assuming that the rate of profit on sales is uniform in each case. 0