4. Department X sells goods to Department Y at a profit of 25% on cost & to Department Z at a profit of 10% on cost. Department Y sells goods to X & Z at a profit of 15% & 20% on sales, respectively. Department Z charges 20% & 25% profit on cost to Department X & Y, respectively. Department Managers are entitled to 10% Commission on Net Profit subject to unrealized profits on Departmental sales being eliminated. Departmental profits after charging manager's commission, but before adjustment of unrealized profits are X = Rs. 36,000; Y = Rs. 27,000; Z = Rs. 18,000 Stocks lying at different departments at the year-end are as under: PARTICULARS Transfer from Department X Transfer from Department Y Transfer from Department Z X(RS.) Y (Rs.) Z (Rs.) 15,000 11,000 14,000 12,000 6,000 5,000 Find out the correct Departmental Profits after charging Managers' Commission. marks) (10
4. Department X sells goods to Department Y at a profit of 25% on cost & to Department Z at a profit of 10% on cost. Department Y sells goods to X & Z at a profit of 15% & 20% on sales, respectively. Department Z charges 20% & 25% profit on cost to Department X & Y, respectively. Department Managers are entitled to 10% Commission on Net Profit subject to unrealized profits on Departmental sales being eliminated. Departmental profits after charging manager's commission, but before adjustment of unrealized profits are X = Rs. 36,000; Y = Rs. 27,000; Z = Rs. 18,000 Stocks lying at different departments at the year-end are as under: PARTICULARS Transfer from Department X Transfer from Department Y Transfer from Department Z X(RS.) Y (Rs.) Z (Rs.) 15,000 11,000 14,000 12,000 6,000 5,000 Find out the correct Departmental Profits after charging Managers' Commission. marks) (10
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:4. Department X sells goods to Department Y at a profit of 25% on cost & to Department Z
at a profit of 10% on cost. Department Y sells goods to X & Z at a profit of 15% & 20% on
sales, respectively. Department Z charges 20% & 25% profit on cost to Department X & Y,
respectively.
Department Managers are entitled to 10% Commission on Net Profit subject to unrealized
profits on Departmental sales being eliminated.
Departmental profits after charging manager's commission, but before adjustment
of unrealized profits are X = Rs. 36,000; Y = Rs. 27,000; Z = Rs. 18,000
Stocks lying at different departments at the year-end are as under:
PARTICULARS
Transfer from Department X
Transfer from Department Y
Transfer from Department Z
X(RS.)
Y (Rs.)
Z (Rs.)
15,000
11,000
14,000
12,000
6,000
5,000
Find out the correct Departmental Profits after charging Managers' Commission.
marks)
(10
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