Process accounts involving an abnormal gain and equivalent production The following information relates to a manufacturing process for a period:

10000 units of output were produced by the process in the period, of which 420 failed testing and were scrapped. Scrapped units normally represent 5% of total production output. Testing takes place when production units are 60% complete in terms of labour and overheads. Materials are input at the beginning of the process. All scrapped units were sold in the period for £0.40 per unit.
Required:
Prepare the process accounts for the period, including those for process scrap and abnormal losses/gains. (12 marks)
ACCA Foundation Stage Paper 3

Transcribed Image Text:

Materials costs Labour and overhead costs 16445 28 596