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Cost Accounting Question. The profit shown in the financial accounts is Shs. 18,592 and for the same period, the cost accounts showed a profit of

Cost Accounting Question.

The profit shown in the financial accounts is Shs. 18,592 and for the same period, the cost accounts showed a profit of 20,496. Comparison of the two sets of accounts revealed the following:

Stock Valuations:

Cost Accounts

Financial Accounts

Raw Materials

Shs

Shs

Opening Stock

6,841

7,269

Closing Stock

5,493

5,148

Finished Goods

Opening stock

13,281

12,915

Closing stock

11,410

11,141

Dividends and interest received of Shs.572 and a loss of 1,950 on the sale of a milling machine were not entered in the cost accounts

Required: Prepare a reconciliation of the two profits

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