Income 4 statement for illiterate Rs. in thousands Beginning finished gcods 733125 Manufactured 555250 ‘ 852500 Total COGS (8) [Gross profit (AB) lOther expenses Depreciation Insurance Rent Sales force salary Office & adm, staff Findings - 1. Rent cost can be considered as opportunity cost which ie Rs. 125000 ofit of Re, 360625 but according to given income statement thee is oss of Rs. 30000 2. COGS is coming as Rs, 425875 which is resulting in net Pr Therefore, COGS needs to be adjusted accordingly to reflect prof 43, Raw material of Rs, 4125000 was shown in income statement but itis not sold a 3s finished good.Income statement for literate Rs. in thousands Direct material Manufacturing overheads (555250 - 298250) production stock of finished goods g stock of finished goods 733125 62500 —=——