RequiredPrepare the following accounts for the week just endedi. Process 1 and process 2 account ii. Abnormal loss and / or gain account iii. Scrap account A company manufacture it main product in two different consecutive processes, process 1 andprocess 2. The output from process 1 is transferred to process 2 the output of process 2 is sent tothe packaging department. Information for the week ended 31 August 2009 is as follows;ProcessInput Material X18,00kg @ GH¢11 per kgMaterial Y12,000 kg @ GH¢2 per kgLabour1,720 hours @ GH¢3 per hourNormal loss5% of inputSales price of scrap GH¢0.32 per kgOutput27,000 kgThere was no opening stock but 600 kg of closing work in progress in process 1 at the end of theweek which is estimated to be 60% complete with regard to conversion cost.Process 2Input Material P19,800 kg @ GH¢2.5 per kgMaterial Y12,600 kg @ GH¢1.5 per kgAdditivesGH¢1,800Labour1,480 hours @ GH¢3 per hourNormal loss5% of inputOutput56,000 kgThere was no opening WIP but there 3,000 kg in process 2 at the end of the week which isestimated to be 50% complete with regard to labour and overheads. Total overheads ofGH¢19,200 was charged to the process and was absorbed on the basis of labour hours.Losses are detected in both processes when it is 75% complete.

Process Accounting It is a method of costing where direct costs are traced and accumulated and…

Answered: Process 1 and process 2 account ii.…

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Accounting

Process 1 and process 2 account ii. Abnormal loss and / or gain account iii. Scrap account

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter5: Process Cost Accounting—general Procedures

Section: Chapter Questions

Problem 16E: Chavez Concrete Inc. has two production departments. Blending had 1,000 units in process at the...

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