Case Study - 3 Scorpion Chemicals Factory LLC is one of the leading chemical company in Oman manufacturing House hold/ Auto/ Laundry Chemicals. Pearl, one of its leading product, is manufactured through two distinct processes I and II. The company has a policy of fixing the selling price of the product at a margin of 25%. The following information is obtained in relation to Process Il for the month of March 2020. Opening stock of WIP is 1600 units valued at RO 7,489 made up of RO 4,389 for materials, RO 2,100 for labour and RO 1,000 for production Overheads. These units were 100% complete as to materials and labour and 80% complete as to production overheads. 8,000 units at the rate of RO 28.5 per unit were transferred from Process I in the beginning of the month. Further direct materials amounting to RO 15,360 were added to the process. The total labour cost and production overheads incurred are RO 22,715 and RO 14,436 respectively. At the end of the month, 1000 units are in WIP. These units were 80% complete as to materials, 70% complete as regard to labour and production overheads. The Production Manager of the company approached you to assist him in the preparation of the Process accounts. You are required to a) Prepare Process Il account and calculate the total cost of producing the product. (7 Marks) b) Estimate the selling price of the final product as per the company's policy and prepare a brief report on the production process to the Management