Prepare a reconciliation statement between the cost accounts and the financial accounts.

Here is the reconciliation of profits between the Financial Account and the Cost Account. All figures are in N'000 unless otherwise stated.

Reconciliation Statement

$$\begin{array}{l r} \textbf{Profit as per Cost Account} & \textbf{N}120,600 \\ \textbf{Add:} & \\ \quad \text{Financial Incomes not recorded in Cost Account:} & \\ \quad \quad \text{Interest received} & 8,000 \\ \quad \quad \text{Dividend received} & 4,000 \\ \quad \quad \text{Profit on sale of photocopy machine} & 6,000 \\ \quad \text{Under-valuation of Finished Goods Opening Stock in Financial Account} & \\ \quad \quad (\text{N}78,000 - \text{N}75,000) & 3,000 \\ \textbf{Less:} & \\ \quad \text{Over-valuation of Raw Materials Opening Stock in Financial Account} & \\ \quad \quad (\text{N}42,600 - \text{N}39,000) & (3,600) \\ \quad \text{Under-valuation of Raw Materials Closing Stock in Financial Account} & \\ \quad \quad (\text{N}31,200 - \text{N}25,600) & (5,600) \\ \quad \text{Under-valuation of Finished Goods Closing Stock in Financial Account} & \\ \quad \quad (\text{N}67,200 - \text{N}66,000) & (1,200) \\ \hline \textbf{Profit as per Financial Account} & \textbf{N}131,200 \\ \hline \end{array}$$

The reconciled profit matches the given profit as per the Financial Account.