Product “X” passes through three processes before it is completed and transferred to the fi nished stock.

The following data are available for the month of June

Output of Process I is transferred to Process II at 25%
on the transfer price.
Output of Process II is transferred to Process III at 20% on the transfer price.
Output of Process III is transferred to the fi nished stock at 10% on the transfer price.
Stocks in progress have been valued at prime cost.
Finished stock has been valued at the price at which it was received from Process III. Sales amounted to Rs. 4,00,000.

These provisions would be created in the previous month in respect of closing stock. Consequently, they are brought into the account of June month as provisions in respect of internal process profi ts in the opening stock.]
Prepare and compute

(a) Process accounts showing profi t element at each stage

(b) Actual realized profi t

(c) Stock valuation for balance-sheet purposes

(d) Provision for profi t A/c.

Process Process Process III Finished Details I Rs. II Rs. Rs. Stock Rs. Opening 5,000 8,000 10,000 20,000 stock Direct 40,000 12,000 15,000 materials Direct 35,000 40,000 35,000 labour Production 20,000 24,000 20,000 Closing 10,000 4,000 15,000 30,000 stock