Intermediate: Losses in process (weighted average)

Prepare the process account using the average cost basis from the following information in respect of process 1

The normal process loss is 800 umts for the penod and IS assumed to be lost at the end of the process. All materials are added at the start of the process, and conversion cost can be assumed to be incurred evenly throughout the process. During this period it IS known that there have been some additional losses due to an accidental increase in temperature. when some units were at the 75% stage of completion. The cost of normal expected loss is all carried by units completed and transferred.

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Material Conversion Units cost cost () () Work in process at start 1000 11000 3200 Input this period 9000 109 000 52000 Transferred to process 2 7200 Work in process at end (50% completed) 1200