A product passes through two processes, A and B. Output of process A is transferred to process B at cost plus 25 per cent and finished output of B is similarly transferred to finished stock at cost...

A product passes through two processes, A and B. Output of process A is transferred to process B at cost plus 25 per cent and finished output of B is similarly transferred to finished stock at cost plus 25 per cent. There is no work-in-progress in any process on December 31. At this date, the following information is further available:

Out of the finished stock, a portion remained at hand valued at `11,000 and the balance was sold for `58,000. Prepare process accounts and the finished stock account. Question of overheads and opening stock is to be ignored. Also show how much reserves will be created for the unrealised profit.