Q162
Cost of process Rs1,60,000 and profit to be charged on the transfer price is 20% What is the inter process profit?
A.
Rs 32,000
B.
Rs 40,000
AnswerC.
Rs 48,000
D.
Rs 54,000
Answer: Option B
Solution
Answer: Option B
Solution:
Inter process profit = (160000 / (100% - 20%) - 160000)
= 200000 - 160000 = Rs. 40000.