QUESTION FOUR Maximo Limited is a Matero based chemical processing company that specializes in the manufacturing of cosmetic products for middle aged women. During May, the following data relates to a single process involved in making a face cream used by teenage girls to clear pimples :$-$ Materials $(1,000$ litres$)$ K$90,000$ Labour K$180,000$ Overheads K$130,500$ A normal loss of $10\%$ of input was expected. Actual output was $850$ litres. Losses are sold as scrap for K$90$ per litre. Required: Calculate the cost per litre $(3$ marks$)$ Prepare a Process Account $(4$ marks$)$ Prepare the abnormal Loss Account $(3$ marks$)$ In a period, $20,000$ units of product Z were produced whilst $18,000$ units were sold with $2,000$ units were carried forward as inventory to the next period. Initially, it was anticipated before the beginning of the control period that all the $20,000$ units of product Z would be produced and sold as a result of an expected favourable demand conditions in the market. Costs and revenues were as follows: Sales $1,000,000$ Production costs: Variable $350,000$ Fixed $150,000$ Selling, Distribution and Administration costs: Variable $120,000$ Fixed $250,000$ Required: Prepare a profit statement based on marginal costing principles. $(6$ marks$)$ Explain briefly the two $(2)$ main uses for marginal costing. $(4$ marks$)[$Tota