Intermediate: Losses in process (weighted average)

Chemical Processors manufacture Wonderchem using two processes, mixing and distillation. The following details relate to the distillation process for a period

Closing WIP of 8000 kg, which was 100% complete for materials and 50% complete for labour and overheads.
The normal loss in distillation is 10% of fully complete production. Actual loss in the period was 3600 kg, fully complete, which were scrapped.
Required:

(a) Calculate whether there was a normal

(b) Prepare the distillation process account for the period, showing clearly weights and values.
(10 marks)

(c) Explain what changes would be required in the accounts if the scrapped production had a resale value, and give the accounting entries.

Transcribed Image Text:

No opening work in progress (WIP) Input from mixing Labour for period Overheads for period 36000 kg at a cost of 166000 43 800 29 200