A manufacturing company has a product that passes through two processes. The following information relates to Period 2.

Process 1 Process 2

Direct materials (4000 units) $32 400

Added direct materials (1200 units) --- $6 480

Direct labour $18 640 $24 000

Production overheads $20 000 $33 000

Output transferred to Process 2 3 800 units

Output transferred to finished goods 4 250 units

Normal loss in each process in 10% and scrap can be sold for $4 each.

Required:

A. Prepare Process 1 and Process 2 accounts

B. Prepare any Abnormal loss/Gain accounts