Element Total Cost in Opening Cost in 80,000 Current Cost in 14,80,000 Equivalent Units Cost per unit in Material Less: Scrap Value of Normal Loss 15,60,000 40.000 40 Labour Overhead 15,000 45,000 45,000 3,59.000 10.77.000 2,45,000 15.20.000 3,74,000 11.22.000 3,05,000 38,000 37,400 37,400 10 30 80 Statement of Evaluation Cost in Units 35,000 Cost per unit in 80 Total cost in 28,00.000 40 Particulars Units introduced and transferred Abnormal Loss Material Labour and Overhead Closing Work in progress Material Labour & Overhead 1,000 800 40.000 32.000 40 72.000 40 2,000 1,600 80.000 64.000 40 1,44,000 122 Process A Particulars To Opening Stock To Material To Labour To Overhead Units 2,000 38,000 Amount in Particulars 1.40.000 By Normal Loss 14,80,000 By Abnormal Loss 3,59,000 By Units Completed 10,77,000 By Closing Stock 30.56,000 Units 2.000 1,000 35,000 2,000 40,000 Amount in 40.000 72.000 28,00,000 1,44.000 30,56.000 40,000 Normal Loss A/C Particulars To Process A A/C Units 2.000 Amount in Particulars 40,000 By Bank A/C Units 2.000 Amount in 40,000 Abnormal Loss Alc Particulars To Process A A/C Units 1,000 Amount in Particulars 72,000 By Bank A/C By Costing P&L AIC Units 1,000 Amount in 20,0000 52,000 72,000 During the month of July 2013 in a Industry 2,000 units were introduced into Process I. The cost of the 2,000 units was 11,600. At the end of the month 1,500 units had been produced and transferred to Process Il; 360 units were still in process; and 140 units had been scrapped. A normal loss of 5% on input is allowed. It was estimated that the incomplete units (i.e. the work-in-progress) had reached a stage in production as follows: Material 75% completed Labour 50% completed Production overhead 50% completed The total cost incurred were in addition to the 2,000 units): Direct materials introduced during the process 33,080 Direct wages 36.880 Production overheads 33,440 Units scrapped realized 32 each The units scrapped had passed through the process, so were 100% completed as regards material, labour and overhead Prepare the Process Account and Abnormal Loss Account