Cloudy plc manufactures a product called Day which passes through two processes; light and dark. The normal level of loss and the scrap value of any loss is as follows:

Production overhead is absorbed on the basis of direct wages. The budgeted overhead for the accounting year was £56 000 and the budgeted direct labour £28 000. There were no stocks of work in progress at the beginning or end of May.
Required:
Prepare the accounts for:

(a) Each of the processes, Light and Dark;

(b) Normal loss;

(c) Abnormal loss and/or gain.

Transcribed Image Text:

Light Process 10% Dark Process 5% 3 6 Normal loss as a percentage of total input Scrap value per kg. The actual data incurred for the month of May 19_3 was: Output in kg. Light Process 850 Dark Process 1 075