Illustration 6 M/s Birla Trader have furnished the following information from financial books for the year ended 31st March, 2014: Trading and Profit and Loss Account for the year ended 31st March, 2014 7,17,500 12,500 To Opening stock (500 units at 35 each) To Materials consumed To Wages To Gross Profit By Sales (10,250 units) 17,500 By Closing stock (250 units at 50 each) 2,60,000 1,50,000 3.02.500 7.30,000 7.30.000 3,02,500 250 10,000 To Factory overheads To Office overheads To Selling expenses To Bad debts To Goodwill written off To Net profit 94,700 By Gross profit 1,06,000 By Interest 55,000 By Rent 4,000 5.000 48,050 3,12,750 3,12,750 a40 The cost sheet shows the following: (a) Cost of materials at