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2 Product X passes through 2 process to completion. In period 2, the cost of production was as follows: Direct materials Direct Labour Direct Expenses
2 Product X passes through 2 process to completion. In period 2, the cost of production was as follows: Direct materials Direct Labour Direct Expenses Process 1 Process 2 $5,024 $8,496 $2,020 $2,968 $3,144 $3,828 Production overheads for the period amounted to $4,988 and are allocated to each process on the basis of 100% of the cost of direct labour. 2,000 units at $6 per unit were issued to process 1. Normal loss of units per process was estimated as follows: Process 1 10% scrap is sold for $2 per unit Process 2 10% scrap is sold for $4 per unit Actual output for each process was as follows: Process 1 1,760 units Process 2 1,600 units Prepare the following accounts: 1. Process account 1 2. Process account 2 3. Abnormal loss Abnormal gain (9 marks) (9 marks) (3.5 marks)
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