Interprocess profit-% age calculation on transfer price equalisation with % on cost

Suresh (Student) (82 Points)

16 October 2016  

I am having problem in understanding while solving problems on Process Costing- Interprocess Profit case.

Can anyone explain me,how -

- 25% Profit on transfer price is equal to 331/3 % Profit on cost

-20% Profit on transfer price is equal to 25% on cost

Kindly elaborate in detail.