A product passes through three processes before it is completed. The output of each process is charged to the next process at a price calculated to give a profi t of 20% on the transfer price. The output of Process III is charged to the fi nished stock account on a similar basis.

There was no WIP at the beginning of the year and the overheads have been ignored. Stocks in each process have been valued at prime cost of the process. The following data are obtained at the end on 31 March 2010:

Process I Finished Process II Process III Rs. Rs. Rs. Rs. Direct material 20,000 30,000 10,000 Direct wages 30,000 20,000 40,000 Stock on 10,000 20,000 30,000 15,000 31 March 2010 Sales during the 1,80,000 year From the above information, prepare: (a) Process accounts showing profit element at each stage (b) A statement showing the actual realized profit (c) A statement showing stock valuation for balance- sheet purpose.