A product is manufactured by passing through three processes: A, B and C. In process C a by- product is also produced which is then transferred to process D where it is completed. For the first week in October, actual data included:

Budgeted production overhead for the week is £30 500. Budgeted direct wages for the week are £12 200. You are required to prepare:
(a) Accounts for process A, B, C and D.
(b) Abnormal loss account and abnormal gain account.

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Process Process Process Process Normal loss of input (%) Scrap value (t per unit Estimated sales value o 10 2.00 4.00 2.00 by-product(f per unit) Output (units Output of by-product 8.00 5760 5100 4370 510 E) Direct materials (6000 units) Direct materials added in 12000 5000 4000 4000 2000 Direct wages Direct experses 1680