Intermediate: 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 by¬ product 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 £30 500.
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 ( per unit) Process Process Process Process A B C D 5 10 5 10 1.50 2.00 4.00 2.00 8.00 - Output (units) Output of by-product (units) 5760 5100 4370 510 450 () () () () Direct materials 12000 (6000 units) Direct materials 5000 9000 4000 220 added in process Direct wages 4.000 6000 2000 200 Direct expenses 800 1680 2260 151