Question: Lambda Ltd. has the following cost details for its two production processes for September: Particulars Process 1 () Process 2 () Materials 90,000 -- Labour

Lambda Ltd. has the following cost details for its two production processes for September:

Particulars	Process 1 (₹)	Process 2 (₹)
Materials	90,000	--
Labour	65,000	130,000
Overheads	70,000	115,000

The output from Process 1 is transferred to Process 2 with a 20% profit on the transfer price. Process 2’s output is transferred to finished goods with a 35% profit. The finished goods are sold for ₹15,00,000.

Requirements:

Prepare accounts for Process 1 and Process 2.
Determine the total profit for Lambda Ltd.
Assume no opening or closing work-in-progress.

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