Iron Spider Ltd produces a metallic paint, which is made in two production processes. The following information applies to last June's production. There was no opening or closing inventory at the beginning and end of either process. All losses were sold to a reprocessing company.

Process 1 Process 2 Direct materials, No further material 25,000 units E30,000 input Direct labour (25,000 E38,725 Overheads $40,000 $50,000 Output 21,000 units 21,450 units Scrap value of all losses E2.00 per unit f3.00 per unit Normal loss 10% of input 5% of input