Department R sells goods to Department S at a profit of 25% on cost and Department T at 10% profit on cost. Department S sells goods to R and T at a profit of 15% and 20% on sales respectively....


Department R sells goods to Department S at a profit of 25% on cost and Department T at 10% profit<br>on cost. Department S sells goods to R and T at a profit of 15% and 20% on sales respectively.<br>Department T charges 20% and 25% profit on cost to Department R and S respectively.<br>Department manages are entitled to 10% commission on net profit subject to unrealized profit on<br>departmental sales being eliminated. Departmental profits after charging manager's commission, but<br>before adjustment of unrealized profit, are as under :<br>Department $ 54,000; Department S $ 40,500 ; Department T$ 27,000.<br>Stocks lying at different departments at the end of the year are as under :<br>Deptt. R Deptt. S Deptt. T<br>$<br>Transfer from Department R<br>22,500<br>16,500<br>Transfer from Department S<br>Transfer from Department T<br>21,000<br>18,000<br>9,000<br>7,500<br>Find out the correct departmental profits after charging manager's commission.<br>

Extracted text: Department R sells goods to Department S at a profit of 25% on cost and Department T at 10% profit on cost. Department S sells goods to R and T at a profit of 15% and 20% on sales respectively. Department T charges 20% and 25% profit on cost to Department R and S respectively. Department manages are entitled to 10% commission on net profit subject to unrealized profit on departmental sales being eliminated. Departmental profits after charging manager's commission, but before adjustment of unrealized profit, are as under : Department $ 54,000; Department S $ 40,500 ; Department T$ 27,000. Stocks lying at different departments at the end of the year are as under : Deptt. R Deptt. S Deptt. T $ Transfer from Department R 22,500 16,500 Transfer from Department S Transfer from Department T 21,000 18,000 9,000 7,500 Find out the correct departmental profits after charging manager's commission.

Jun 11, 2022
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