i$.$ Transchem chemical processor uses two processes, mixing and distillation. The following details relate to the distillation process for a period:

No opening work in progress $($WIP$)$

Input from mixing: $36,000kg$ at a cost of Shs$.166,000$

Labour for period

Shs$.43,800$

Overheads for period $.$

Shs$.29,200$

Closing WIP of $8000$ kg $.$ which was $100$ per cent complete for materials and $50$ per cent complete for labour and overheads.

The normal loss in distillation is $10$ per cent of fully complete production. Actual loss in the period was $3600$ kg $,$ fully complete, which were scrapped.

Required:

a$)$ Calculate whether there was a normal or abnormal loss or abnormal gain for the period.

$(4$ marks$)$

b$)$ Prepare the distillation process account for the period.

$(4$ marks$)$

c$)$ Explain what changes would be required in the accounts if the serapped production had a resale value and give the accounting entries.

$(3$ marks$)$