A Ltd. used a historical cost system and applies overheads on the basis of predetermined rates. The
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A Ltd. used a historical cost system and applies overheads on the basis of predetermined rates. The following data are made available by the company for the year ended 31.03.2022.
| Rs. | |
| Manufacturing overheads | 32,72,000 |
| Manufacturing overheads applied | 32,00,000 |
| Work in process | 5,00,000 |
| Finished goods | 15,00,000 |
| Cost of goods sold | 2,20,00,000 |
Apply two methods for disposal of under absorbed overheads and state the impact of each method on the profit earned by the firm.
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