Knowing the hectic schedule of a student preparing for the examination, a homemaker managing work from home or a new parent busy in neonatal care, a…

Knowing the hectic schedule of a student preparing for the examination, a homemaker managing work from home or a new parent busy in neonatal care, a freshly qualified professional (Mr. Rishi) entered into a start-up business of manufacturing frozen foods. The process majorly involve washing and cutting the vegetables (Process I), blanching, cooling and mixing of ingredients with spices (Process II), forming, frying and freezing the final product (Process III). In Accounts, Mr. Rishi normally transfers the output of one process to another process at cost but, being a young entrepreneur, he is interested in knowing the profit made at each and every process. Thus, it was decided to transfer the output of Process I and II to the next process at cost plus 25%. Further, the output of Process III is also transferred to finished stock at cost plus 33 1/3%. Following information is extracted from the books of Mr. Rishi for the current year: Process I (₹) Process II (₹) Process III (₹) Finished Stock (₹) Opening stock 8,02,500 14,44,500 21,40,000 24,07,500 Direct materials 42,80,000 34,77,500 26,75,000 Direct wages 66,87,500 57,78,000 49,22,000 Factory overheads 51,36,000 38,52,000 35,57,750 Closing stock 10,70,000 17,12,000 20,86,500 26,75,000 Inter-process profit included in opening stock NIL 2,14,000 5,35,000 10,70,000 Stock in processes is valued at prime cost. The finished stock is valued at the price at which it is received from Process III. Mr. Rishi wants you to FIGURE OUT the following to analyse the profit generated at each process: