Preparation of process accounts with all output fully completed A chemical compound is made by raw material being processed through two processes. The output of Process A is passed to Process B where further material is added to the mix. The details of the process costs for the financial period number 10 were as shown below:

The departmental overhead for Period 10 was £6840 and is absorbed into the costs of each process on direct labour cost.

Assume no finished stock at the beginning of the period and no work in progress at either the beginning or the end of the period.
Normal loss is contaminated material which is sold as scrap for £0.50 per kg from Process A and £1.825 per kg from Process B, for both of which immediate payment is received.
You are required to prepare the accounts for Period 10, for

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Process A Direct material 2000 kilograms at 5 per Direct labour Process plant time kg 7200 140 hours at 60 per hour Process B Direct material 1400 kilograms at 12 Direct labour Process plant time 4200 per kg 80 hours at 72.50 per hour