Required : i) The process account for each process : Fermenting Process Account Particulars Units Debit ($) Particulars Unit Credit ($) Material 65,000 780,000 Normal Loss 5,200 0 65,000 litres * $ 12 65,000 * 8% ) Direct Labour 114,600 Abnormal Loss (@ 4,800 81,600 $17) (65,000 -55,000 - 5,200 ) Manufacturing Overhead 122,000 Transfer to Distilling 55,000 935,000 @ $17 per unit Total 65,000 1,016,600 Total 65,000 1,016,600 Working: "Cost Per Unit = Expected Cost of Production Expected Output * *" (pg -9) * Expected Cost of Production = Total Process Cost - Value of Normal Loss **Expected Output = Input Units - Normal Loss Units Expected Output : 65,000 - 5,200 = 59,800 1,016,600 -0 Cost per unit = 65,000 - 5,200 1,016,600 Cost per unit = = $17 59,800