During January 2,000 units were introduced into process I. The normal loss was estimated at 5% on input. At the end of the month 1,400 units had been produced and transferred to the next process.

460 units were incomplete and 140 units had been scrapped. It was estimated that the incomplete units had reached a stage in production as follows:

Material: 75% completed Labour: 50% completed Overhead: 50% completed The cost of 2,000 units was Rs 5,800. Direct materials introduced during the process amounted to Rs 1,440. Direct wages amounted to Rs 3,340. Production overheads incurred were Rs 1,670. Units scrapped realized Re 1 each. The units scrapped had passed through the process; so they were 100%

complete with respect to material, labour and overhead. Prepare a statement of equivalent production, a statement of cost and the process I account.