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(Guest)

Plese solve this sum-

Shri gangaram sells two products manufactured in his own factory. The goods are made in two departments. A and B for which seperate sets of books are maintained. Some of the manufactured goods of department A are used as Raw material by department B and vice-versa.

From the following particulars you are required to ascertain the total cost of goods manufactured in department A and B.

Total units manufactured             Dept.A 1000000           Dept.B 500000

Total cost of manufacture            Dept.A Rs.10000         Dept.B Rs.5000

(excluding inter departmental transfers)

Department A transferred 250000 units to department B and the later transferred 100000 units to the former.

[taken from ad.a.c. ipcc b.m.gupta Q.no 13]

Please reply as I have exams in may.