(I) A worker produces 400 units in a week. Normal production per hour will be 10 units. The wage rate per hour is Rs. 50. Required: Earning of worker in a week. (II) On comparison of cost and…

(I) Calculation of Worker’s Weekly Earnings

Given:

• Total units produced in a week = 400 units
• Normal production per hour = 10 units
• Wage rate per hour = Rs. 50

Step 1: Calculate Total Working Hours The worker’s total working hours can be determined by dividing the total production by the normal production rate per hour.

$$\text{Total Working Hours}=\frac{\text{Total Units Produced}}{\text{Normal Production per Hour}}=\frac{400}{10}=40\text{ hours}$$

Step 2: Calculate Weekly Earnings Multiply the total working hours by the wage rate per hour to find the total earnings.

$$\text{Weekly Earnings}=\text{Total Working Hours}\times \text{Wage Rate per Hour}=40\times 50=\text{Rs. 2,000}$$

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(II) Cost Reconciliation Statement

Given:

• Net profit as per cost accounts = Rs. 25,000
• Factory overhead over-recorded in cost accounts = Rs. 10,000
• Overvaluation of opening stock in cost accounts = Rs. 5,000
• Depreciation under-recorded in cost accounts = Rs. 3,000

Step 1: Adjustments for Reconciliation To reconcile cost profit with financial profit, the following adjustments must be made:

Step 2: Calculate Adjusted Cost Profit $$\text{Adjusted Cost Profit}=\text{Net Profit (Cost A/c)}+\text{Factory Overhead Over-recorded}-\text{Overvaluation of Opening Stock}+\text{Depreciation Under-recorded}$$ $$=25,000+10,000-5,000+3,000=\text{Rs. 33,000}$$

Step 3: Prepare Cost Reconciliation Statement

Final Answer: The adjusted cost profit (financial profit) is Rs. 33,000.