(a) Distinguish between job costing and process costing

(b) Explain how you would treat the following items in the accounts of a process costing system:

(i) Waste

(ii) Scrap

(c) A chemical is produced by passing a basic ingredient through four processes, during each of which direct materials are added.

REQUIRED From the information given below for the month of March, you are requested to prepare a statement in which each element of cost is analysed and the output evaluated, and to show the accounts of process 3 and abnormal loss Data for Process 3 include:
Work-in-process:
Units Degree of completion:
Material X y Labour Overhead Cost incurred during period:
Transfer from process 2:
Material X y Labour Overhead Transfer to process 4 during period:
4550 units rejections during the period:
Normal Abnormal Units rejected had reached the following stages:
Material X y Labour Overhead Rejected units are considered as waste Opening 400 %
80 80 50 40 Units 5400 Units 200 50 %
80 80 60 40 The cost per unit in February and March was the same ICMA, PS 11, Part I, Cost Accounting 2, May 1982.
11 Professional stage.
91 STOCK Closing 1000 %
50 45 30 25 $
6240 2862 944 468 1398