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3,84,000 (1) Factory Overheads P X 4,64,000 Rs. 3,07,200 5,80,000 96,000 Q X 4,64,000 Rs. 76,800 5.80,000 64.000 R x 4,64,000 Rs. 51,200 5,80,000 36,000 R X 4,64,000 Rs. 28,800 5,80,000 p36 480 = = = = (2) Incremental Sales = Sales - Joint Costs A 14.08,000 8,80,000 Rs. 5,28,000 B 9,60,000 - 8,80,000 Rs. 80,000 3,20,000 - 2,00,000 Rs. 1,20,000 Illustration: 5 The following information is given in respect of process No.3 for the month of Jan. 2003 Opening Stock -- 2000 units made-up of Direct Materials - I Rs. 12.350 Direct Materials - II Rs. 13,200 Direct Labour Rs. 17,500 Overheads Rs. 11,000 Transferred from process No.2: 20,000 units @ Rs. 6 per unit Transferred to process No.4: 17,000 units Expenditure Incurred in process No. 3 : Direct Materials Rs. 30,000 Direct Labour Rs. 60,000 Overheads Rs. 60,000 Additional Information (1) Scrap : 1,000 units - Direct Materials 100%. Direct Labour 60%, Overheads 40% (2) Normal Loss 10% of production (3) Closing stock : 4,000 Units - Degree of completion : Direct Materials 80% Direct Labour 60% Overheads 40% Prepare process No. 3 Account using Average Price Method, along with necessary supporting statemente