Anglian Products processes its products through three separate stages. Details of production for the month ending 31 May were as follows: Process Raw Materials Labour Over Normal Actual Cost heads Loss Output (Kg) (K/kg) (K) (K) (%) (Kg) Primary 65000 0.60 5,730 3,240 10 55000 Secondary 7,200 4,100 53000 Finishing 8,280 5,160 48000 During the month K6,300 worth of materials were used in the secondary process. The nature of the processes require equipment to be cleaned at the end of each month. Thus there are no openings or closing stocks of products in process. Losses from the finishing process are sold at K1.25/kg. Required: i. The process account for each process; ii. The abnormal loss and abnormal gain accounts as appropriate.
Anglian Products processes its products through three separate stages. Details of production for the month ending 31 May were as follows: Process Raw Materials Labour Over Normal Actual Cost heads Loss Output (Kg) (K/kg) (K) (K) (%) (Kg) Primary 65000 0.60 5,730 3,240 10 55000 Secondary 7,200 4,100 53000 Finishing 8,280 5,160 48000 During the month K6,300 worth of materials were used in the secondary process. The nature of the processes require equipment to be cleaned at the end of each month. Thus there are no openings or closing stocks of products in process. Losses from the finishing process are sold at K1.25/kg. Required: i. The process account for each process; ii. The abnormal loss and abnormal gain accounts as appropriate.
Chapter1: Financial Statements And Business Decisions
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