Bolder Chemicals limited manufactures a product, Zander, within two separate processes.For the week ended September 24, 2019
Question:
Bolder Chemicals limited manufactures a product, Zander, within two separate processes.For the week ended September 24, 2019 the details were:
Process 1
Materials input, 4000kilos @$3 per kilo
Labour $1840
Overheads $2150
Process 2
Materials input 2,200kilos @4 per kilo
Labour $1420
Overheads 41050
Normal output are:
Process 1, 90% of input
Process 2, 80% of input
All losses have a scrap value of $0.50 per kilo
Output during the week was 3,700 kilos from Process 1 and 4,600 kilos from Process 2.
Required:
As the accounts assistant at Bolder Chemicals Limited you are asked to prepare:
a.The process 1 account for the week ended 24 September 2019(11 marks)
b.The process 2 account for the week ended 24 September 2019(12 marks)
c.Distinguish between normal and abnormal loss and state how the balances on the abnormal loss and abnormal gain accounts are treated at the end of the accounting period(2 marks)
NB. Calculate costs per unit of expected output to the nearest cents.