Example 8 A process for making lead shot involves melting ingots of lead, then pouring the melt from a height, into a cooling bath. There is a loss of material due to spillage of the melt and splatter by the bath. This material is sold for scrap. In a normal production run 1kg of lead costing K40 would produce 0.95kg of shot with the scrap being sold for K20 per kg. In a week 100kg of lead was processed and 92kg of lead shot produced. Labour costs of K550 were incurred and overhead costs are normally allocated at a rate of 4 times labour costs. Required Calculate the cost per unit for lead shot and an amount to be written off in respect of any abnormal loss. Also write up the process accounts