(100 units) Rs. 120+ Rs. 350 (b) =Rs. 470 Cost of units introduced and completed during the period (550 units)=Rs. 2750 Total Cost Rs. 3,220 r PROCESS ACCOUNT Particulars Units Particulars Units Amount Rs. Amount Rs. 3.220 650 100 120 To Opening stock of work in-progress To Costs incurred during the period By Transfer to next process By Closing stock of work-in progress SO 150 600 3.250 700 3.370 700 3,370 It has been so far assumed that work-in-progress was complete as regards materials. labour and overheads on an equal basis. However, it may not be so. The cost of materials might have been incurred to the extent of 80% for the work-in-progress while the cost of labour to the extent of 70% and that of overhead 60%. In such a case equivalent production in units in respect of each of the three elements should be computed separately. Cost per unit of equivalent production will have to be calculated separately for materials, labour and overhead. The relevant rate will be applied to corresponding equivalent units for computing process costs of output transferred and stock of work-in-progress. The following illustration makes this point clear. Illustration 11. From the following details prepare statement of equivalent production and statement of cost and find the value of: (a) Output transferred and (b) Closing work-in-progress Opening work-in-progress 2,000 units The costs are: Rs Materials (100% complete) 7.500 Labour (60% complete) 3,000 Overhead (60% complete) 1,500 Units introduced into this process 8,000 There are 2,000 units in process and the stage of completion is estimated to be: Material 100% Labour 50% Overhead 50% 8,000 units are transferred to next process. Rs. The process costs for the periods are : Material Labour Overhead 1,00,000 78,000 39.000