ABC plc operates an integrated cost accounting system and has a financial year which ends on 30 September. It operates in a processing industry in which a single product is produced by passing inputs through two sequential processes. A normal loss of 10 per cent of input is expected in each process.
The following account balances have been extracted from its ledger at 31 August:

ABC plc uses the weighted average method of accounting for work in process.
During September the following transactions occurred:

Overhead costs are absorbed into process costs on the basis of 150 per cent of labour cost.
The losses which arise in process 1 have no scrap value: those arising in process 2 can be sold for £2 per kg.
Details of opening and closing work in process for the month of
September are as follows:

In both processes closing work in process is fully complete as to material cost and 40 per cent complete as to conversion cost. Stocks of finished goods at 30Septemberwere valued at cost of £60000.
Required:
Prepare the ledger accounts for September and the annual proft and loss account of ABC plc. (Commence with the balances given above, balance off and transfer any balances as appropriate.)

Debit (E) Credit (f Process 1 (Materials 4400; Conversion costs 3744) Process 2 (Process 1 4431; 8144 Conversion costs 5250) Abnormal loss Abnormal gain Overhead control account Sales Cost of sales Finished goods stock 9681 1400 300 250 585000 442500 65000 Process 1 materials input labour cost transfer to process 2 Process 2 4000 kg costing 22000 12000 2400 kg transfer from process 1 labour cost transfer to finished goods 2400 kg 2500 kg 54 000 E52000 15000 Overhead costs incurred amounted to Sales to customers were Opening Closing 3400 kg 2600 kg Process 1 Process 2 3000 kg 2250 kg