Arnav Ltd. manufactures chemical solutions used in paint and adhesive products. Chemical solutions are produced in different processes. Some of the…

Arnav Ltd. manufactures chemical solutions used in paint and adhesive products. Chemical solutions are produced in different processes. Some of the processes are hazardous in nature which may results in fire accidents. At the end of the last month, one fire accident occurred in the factory. The fire destroyed some of the paper files containing records of the process operations for the month. You being an associate to the Chief Manager (Finance), are assigned to prepare the process accounts for the month during which the fire occurred. From the documents and files of other sources, following information could be retrieved: Opening work-in-process at the beginning of the month was 500 litres, 80% complete for labour and 60% complete for overheads. Opening work-in-process was valued at 2,78,000. Closing work-in-process at the end of the month was 100 litres, 20% complete for labour and 10% complete for overheads. Normal loss is 10% of input (fresh) and total losses during the month were 800 litres partly due to the fire damage. Output transferred to finished goods was 3,400 litres. Losses have a scrap value of 20 per litre. All raw materials are added at the commencement of the process. The cost per equivalent unit is 660for the month made up as follows: Raw Material 300Labour 200Overheads - 160 The company uses FIFO method to value work-in-process and finished goods. The following information are required for managerial decisions: