IUILLUSTRATION 14 (When actual and normal output are given). Following information is available from the financial books of a company having a normal production capacity of 60,000 units for the year ended 31st March, 2019: (i) Sales $10,00,000 (50,000 units). (ii) There was no opening and closing stock of finished units. (iii) Direct material and direct wages cost were $ 5,00,000 and $2,50,000 respectively. (iv) Actual factory expenses were $ 1,50,000 of which 60% are fixed. (v) Actual administrative expenses were $ 45,000 which are completely fixed. (vi) Actual selling and distribution expenses were $30,000 of which 40% are fixed. (vii) Interest and dividends received $ 15,000. You are required to: (a) Find out profit as per financial books for the year ended 31st March, 2019; for the on the (b) Prepare a statement of cost and profit to ascertain the profit as per cost accounts year ended 31st March, 2019 assuming that the indirect expenses are absorbed basis of normal production capacity; and (c) Prepare a statement reconciling profits shown by financial and cost books