$6,000$ kg of material are input to a process in a period. The normal loss is

$10\%$ of input. There is no work$-$in$-$progress at the end of each period. Costs

incurred in the process in the period totalled $$48,600.$ Losses have a scrap

value of $$2\mathrm{.}70$ per kg$.$

Required:

$($a$)$ Calculate the revised cost per kg and prepare the relevant accounts:

i$)$ if the actual output is $5,280$ kg

ii$)$ if the actual output is $5,580$ kg$.$

Normal loss,

abnormal loss

and gain when

there is a scrap

value