Brendan McCole processes raw materials to produce soaps and shoe polish in Liverpool.

In April, he recorded the details relating to the manufacture of soap, which we can assume takes place in two separate production processes:

(a) At the beginning of April he brought forward from March work in progress valued at

£5,000, representing 1,500 units. The degrees of completion of those units of work in progress were estimated to be materials 80%, labour 70%, and overheads 20%.

(b) During April, McCole transferred in 10,000 units from process 1 at a value of £30,000, and added materials worth £20,000, labour worth £20,000 and overheads worth EY7 500;

(c) At the end of April, 1,700 units had been started but were not yet complete: he estimated that the degree of completion of these units was 70% of the material inputs, 80% of labour inputs, and 60% of overhead inputs.

McCole makes an allowance of 15% of the input from the materials transferred in from the previous process as a normal loss. All lost units are considered to be scrapped units and they have a scrap value of £0.50 per unit. All losses are determined at the end of the process, and are therefore fully complete as per materials, labour and overheads.

Finally, 9,800 units were transferred as complete, to finished goods.

Required Prepare all of the necessary accounts for McCole’s soap operations.