9. Nigel Pulis is the owner of a small factory manufacturing a popular fruity drink for the local market. The production of this drink requires three processes, namely, Process A, Process B and Process C. The output of each process is transferred to the next process, with the output of Process C being transferred to stores as finished inventory. The following information is available for the month of August 2018: Direct Material - litres Direct Material cost total - Direct Labour - Direct expenses - Normal loss - % of all input Scrap value of loss per unit - Process A 20,000 41,600 4,900 1,600 10% 0.20 Process B 12,000 25,280 3,600 1,454 3% 0.30 Process C 4,100 12,710 2,400 650 Production overheads amounted to 6,000 and are absorbed on the basis of direct labour hours. The direct labour hour rate in each process is as follows: Process A Process B Process C 7.00 per hour 6.00 per hour 8.00 per hour The output from each process was as follows: Process A Process B Process C 17,600 litres 28,900 litres 32,700 litres There was no opening or closing inventory or work in progress in any process. Required: A. Prepare process accounts for each of the three processes. (15) B. Prepare the normal loss, abnormal loss and abnormal gain accounts. (7) C. Explain why the accounting treatment of normal loss and abnormal loss is different. (4)