1. The following information is shown in respect of Process 3 for the month of September: Opening stock: 2,000 units

Value ($) Degree of Completion

Input material 16,000 100% complete

Additional material 12,000 80% complete

Labour 8,000 60% complete

Overhead 4,000 50% complete

Total value 40,000

Transfer from process 2: 20,000 units valued at $466,720

Transfer to process 4: 15,000 units

Process costs during September were as follows:

$

Additional material 146,544

Labour 119,260

Overhead 89,720

Closing stock: 6,000 units

Degree of completion

Input materials 100% complete

Additional material 40% complete

Labour 50% complete

Overhead 60% complete

Units scrapped: 1,000 units

Degree of completion

Input materials 100% complete

Additional material 60% complete

Labour 50% complete

Overhead 40% complete

Normal loss is 4% of production. Units scrapped were realized at $20 per unit.

Required: Prepare the Process 3 account using the either the FIFO method or the average cost method and show which method you used (25 marks)

1. The following information is shown in respect of Process 3 for the month of September: Opening stock: 2,000 units Value ($ Degree of Completion Input material 16,000 100% complete Additional material 12,000 80% complete Labour 8,000 60% complete Overhead 4,000 50% complete Total value 40,000 Transfer from process 2: 20,000 units valued at $466,720 Transfer to process 4: 15,000 units Process costs during September were as follows: $ Additional material 146,544 Labour 119,260 Overhead 89,720 Closing stock 6,000 units Degree of completion Input materials 100% complete Additional material 40% complete Labour 50% complete Overhead 50% complete Units scrapped: 1,000 units Input materials Additional material Labour . Overhead Degree of completion 100% complete 60% complete 50% complete 40% complete Normal loss is 4% of production. Units scrapped were realized at $20 per unit. Required: Prepare the Process 3 account using the either the FIFO method or the average cost method (25 marks)