Product B passes through two processes before it is completed and transferred to finished stock. The following data are available for the month of March of the current year:

Process I Process II Opening stock (at prime cost) Rs 5,000 Rs 8,000 Direct materials 40,000 12,000 Direct labour 35,000 40,000 Production overheads 20,000 24,000 Closing stock (at prime cost) 10,000 4,000 Output of processes are transferred to the next ones at the following transfer prices:

Process I—@ 25 per cent on the transfer price to Process I Process II—@ 25 per cent on the transfer price to finished stock.

Finished stocks are valued at the price at which they are received from Process II, and are as follows: Opening stock, Rs 20,000; Closing stock, Rs 30,000. Sales for the month amounted to Rs 3,00,000. Provision for internal process profits as on March 1 were as follows:

Included in work-in-process of Process II, Rs 1,500; Included in finished stock, Rs 6,500 Calculate:

(a) Process costs,

(b) Gross profit, and

(c) Write up the provision for inter-process profit account.