The following data relate to Process 2 for one accounting period. Process 2 receives units from Process 1 and, after processing, transfers them to Process 3.

Opening WIP 600 units

	Value (GH¢)	Percentage Complete (%)
Input materials	720	100
Material introduced	500	60
Labour	340	50
Overheads	270	40

Transfers from process 1: 4,100 units valued at GH¢5,200. Transfers to process 3: 3,500 units

GH¢

Material introduced	2,956
Labour	2,200
Overheads	1,900

Closing stock 800 units at the following stage of completion Input material 100% complete

Material introduced 60% complete

Labour 50% complete

Overheads are 40% complete

400 units were scrapped at the following stage of completion Input material 100% complete

Material introduced 100% complete

Labour 40% complete

Overheads are 30% complete

The normal loss is 10% of production and the scrapped units realized 40 pesewas each.

It is required to prepare the Process Account for Process 2 using the FIFO method and the weighted average cost method.

Answer rating: 100% (QA)

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