Mr. Bean's chocolate Wiggly bars pass through two processes. The data for the month just ended are:

Cost Item

Kg

$

Cost Item

$

Process 1

Ingredients

4,000

5,000

Process 2

Packaging

10,000

Labour

4,000

Labour

6,000

Overheads

2,000

Overheads

3,000

Mr. Bean allows the staff to eat 5% of the chocolate as they work on Process 1. There was no work in progress at the month end.

a)Prepare the two process accounts and calculate the cost per kg. (10 marks)

b)Prepare a finished goods account for Mr. Bean's chocolate Wiggly bars. (05 marks)

c)How would Mr. Bean benefit while using process costing? (05 marks)

Total, 20 marks