Preparation of process accounts with all output fully completed A product is manufactured by passing through three processes: A, B and C. In process C a byproduct is also produced which is then transferred to process D where it is completed. For the first week in October, actual data included:

Budgeted production overhead for the week is £30500.
Budgeted direct wages for the week are £12 200;
You are required to prepare:

(a) accounts for process A, B, C and D.
(20 marks)

(b) abnormal loss account and abnormal gain account.

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Normal loss of input (%) Scrap value ( per unit) Estimated sales value of by-product Process Process Process Process A B C D 5 10 5 10 1.50 2.00 4.00 2.00 8.00 ( per unit) Output (units) 5760 5100 4370 Output of by-product 510 450 (units) () () () () Direct materials 12.000 (6000 units) Direct materials 5000 9000 4000 220 added in process Direct wages 4000 6000 2000 200 Direct expenses 800 1680 2260 151