A) Prepare the following accounts for April 2017: i. Blending process ii. Fermentation process iii. Scrap iv. Abnormal loss/gain v. Finished goods

B) Distinguish between a joint product and a by product using an example of your choice

Meyer ple produces craft beer by passing a new material through two production processes. The output from the Blending process is transferred to the Fermentation process, where alitional material is added to the mix. The details of the processes for April 2017 were as follows: Blending Process Direct material 3.000 litres at 5 per it Direct labour E 10,800 Process plant time 210 hours at 60 per hour Fermentation Process Direct material 2.100 litres at 12 per litre Direct labour 6.294 Process plant time 120 hours at 72.50 per hour The production overhead for April 2017 was 10.200 and is absorbed into the costs of each process based on direct labour cost. The outputs from the two processes are as follows: Blending Process Fermentation Process Expected output 90% of input 90% of input Actual output 2.100 litres 3.930 litres Assume that there was no finished inventory (stock) at the beginning of April and no work-in-progress Meither the beginning or end of the month The normal loss is contaminated material, which is sold to the animal feed industry for 0.50 per litre from the Bleeding process and 1.825 per litre from the Fermentation process for both of which immediate payment is received. Requirement a) Prepare the following accounts for April 2017: Blending process 4 marks . Fermentation process 4 marks iii Scrap 3 marks Abnormal lossain 3 marks . Finished goods mark b) Distinguish between a joint product anul a by product using an example of your choice. 5 marks Total 20 marks Meyer ple produces craft beer by passing a new material through two production processes. The output from the Blending process is transferred to the Fermentation process, where alitional material is added to the mix. The details of the processes for April 2017 were as follows: Blending Process Direct material 3.000 litres at 5 per it Direct labour E 10,800 Process plant time 210 hours at 60 per hour Fermentation Process Direct material 2.100 litres at 12 per litre Direct labour 6.294 Process plant time 120 hours at 72.50 per hour The production overhead for April 2017 was 10.200 and is absorbed into the costs of each process based on direct labour cost. The outputs from the two processes are as follows: Blending Process Fermentation Process Expected output 90% of input 90% of input Actual output 2.100 litres 3.930 litres Assume that there was no finished inventory (stock) at the beginning of April and no work-in-progress Meither the beginning or end of the month The normal loss is contaminated material, which is sold to the animal feed industry for 0.50 per litre from the Bleeding process and 1.825 per litre from the Fermentation process for both of which immediate payment is received. Requirement a) Prepare the following accounts for April 2017: Blending process 4 marks . Fermentation process 4 marks iii Scrap 3 marks Abnormal lossain 3 marks . Finished goods mark b) Distinguish between a joint product anul a by product using an example of your choice. 5 marks Total 20 marks