Well Done Sdn$.$ Bhd$.$ makes a product that has to pass through two manufacturing processes, I and II$.$ All the materials is input at the start of Process I. No losses occur in Process I but there is a normal loss in Process II equals to $7\%$ of the input into that process. Losses have no realisable value.

Process I is operated only in the first part of every month followed by Process II in the second part of the month. All completed production from Process I is transferred into Process II in the same month. There is no Work In Process $($WIP$)$ in Process II$.$

Information for last November for each process is as follows:

Process I

Opening WIP $200$ units $(40\%$ complete for

conversion costs$)$ valued in total at

RM$16,500$

Input into the process $1,900$ units with a material cost of

RM$133,000$

Conversion costs incurred RM$93,500$

Closing WIP $50\%$ complete for conversion

costs

Process II

Transfer from Process I $1,800$ units

Conversion costs incurred RM$78,450$

Completed units $1,660$ units

Calculate the value of abnormal loss of the Process II$.$

Question $9$Answer

a$.$

RM$3,906$

b$.$

RM$2,860$

c$.$

RM$4,200$

d$.$

RM$3,075$