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ILLUSTRATION 10 Department P sells goods to Department Sat a profit of 25% on cost and to Department Q at a profit of 15% on
ILLUSTRATION 10 Department P sells goods to Department Sat a profit of 25% on cost and to Department Q at a profit of 15% on cost. Department S sells goods to P and Q at a profit of 20% and 30% on sales respectively. Department Q sells goods to P and S at 20% and 10% profit on cost respectively. Departmental Managers are entitled to 10% commission on net profit subject to unrealised profit on departmental sales being eliminated. Departmental profits after charging Manager's commission, but before adjustment of unrealised profits are as below: $ Department P 90,000 Departments 60,000 Department Q 45,000 Stocks lying at different Departments at the end of the year are as below: Departments P S Q Transfer from P 18,000 14,000 Transfer from S 48,000 38,000 Transfer from a 12,000 8,000 Find out correct Departmental Profits after charging Manager's Commission
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