Question $2$

$($Total $25$ marks$)$

The following information relates to a company that manufactures one product $x,$ which passes through two processes, figures are available:

$\backslash$table$[[$Process $1,$Process $2],[$Input $5,,5,000$ units $$20,000],[$Transfer from Process $1,3,800$ units$],[$Labour$,$$$8,600,$$$11,700],[$Overhead$,50\%$ Labour,$50\%$ Labour$],[$Normal Loss,$10\%$ Input,$5\%$ Input$],[$Closing WIP,$400$ units,$200$ units$],[$Output$,3,800$ units,$3,500$ units$],[$Scrap value of losses,$ $,$$$1\mathrm{.}3$ per unit,$$3\mathrm{.}5$ per unit$]]$

$3$

Closing Work in Progress in both processes is complete as to materials, and $50\%$ complo to labour and overhead costs.

All the losses from Process $1$ were sold at $$1\mathrm{.}3$ per unit and all of those from Process $2$ were sold at $$3\mathrm{.}5$ per unit.

Required:

Prepare the following:

$($a$)$ Process $1$ account

$(9$ marks$)$

$($b$)$ Process $2$ account

$(9$ marks$)$

$($c$)$ Abnormal Loss account

$(2$ marks$)$

$($d$)$ Abnormal Gain account

$(2$ marks$)$

$($e$)$ Normal Loss account

$(3$ marks$)$