The profit and loss account of Oil India (Pvt) Ltd. for the year ended 31^st March, 2003, is as follows:

As per the cost records the direct expenses have been estimated at a cost of Rs. 30 per kg and administration expenses at Rs. 15 per kg. The profit as per the costing records are Rs. 1,10,400. During the year 6,000 kg were manufactured and 4,800 kg were sold. Prepare a statement of costing profit and loss account and reconcile the profit with financial records.

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To Materials To Wages To Direct expenses To Gross profit To Administration expenses To Net profit Rs. 4,80,000 3,60,000 2,40,000 1,20,000 12,00,000 60,000 60,000 1,20,000 By Sales By Closing stock By Work-in-progress: Materials Wages Direct expenses By Gross profit 30,000 18,000 12,000 Rs. 9,60,000 1,80,000 60,000 12,00,000 1,20,000 1,20,000