Expo The loss in each process represented a scrap which could be sold for the following valueprocess I shs 20 per unit, process II shs 44 per unit process III sh 65 per unit. There were no stocks of raw materials or work in progress at the beginning or end of the month.

The output of each process passes directly to the next process and finaly to finished goods inventory. Production overheads is observed by each process on the basis of 50% of the cost of direct labour

Required

Separate process accounts for each of the 3 process10 mks

Abnormal loss and abnormal gains account4mks

Scrap debtor accountchemical ltd makes a chemical process that passes through three processes in production I,II and III. In the month of January 2021 6000litres of basic raw materials priced at 240000 were introduced in the process 1. Subsequently, the following costs were incurred

Element of costTotalIIIIII

Direct material (additional)87500300004000017500

Direct labour110000400005000020000

Direct expenses16900600016009300

Normal loss per process were estimated as follows process 110%process25%process 3 8%

Output of each process was;process1 5300process 2 5000 process 3 4700

The loss in each process represented a scrap which could be sold for the following valueprocess I shs 20 per unit, process II shs 44 per unit process III sh 65 per unit. There were no stocks of raw materials or work in progress at the beginning or end of the month.

The output of each process passes directly to the next process and finaly to finished goods inventory. Production overheads is observed by each process on the basis of 50% of the cost of direct labour

Required

 

Separate process accounts for each of the 3 process 10 mks

 

Abnormal loss and abnormal gains account 4mks

 

Scrap debtor account 4mks