A product passes through two processes. The output of Process 1 becomes the input of Process II and the output of Process II is transferred to warehouse. The quantity of raw materials introduced into...

A product passes through two processes. The output of Process 1 becomes the input of Process II and the output of Process II is transferred to warehouse. The quantity of raw materials introduced into Process I is 20,000 kgs at `10 per kg. The cost and output data for the month under review are as under:

The company’s policy is to fix the selling price of the end product in such a way as to yield a profit of 20 per cent on selling price.

REQUIRED:

(i) Prepare the process accounts (ii) Determine the selling price per unit of the end product.