a) Schedule of equivalent units b) Blending Process Account c) Thinning Process Account d) Normal Losses Account e) Abnormal Losses / Abnormal Gains Account f) Discuss how losses both Normal and Abnormal are accounted for In Process Costing.

Westport Ltd makes glue for use in the construction industry. It operates the manufacturing process in 2 stages: Blending (Process 1) & Thinning (Process 2). The company uses FIFO for inventory valuation purposes. Materials are introduced at the start of the Blending process while Labour & Overheads are introduce uniformly throughout the process. During the most recent accounting period the following activities took place in the Blending & Thinning processes Blending Thinning Materials 5,000 Kg @ 6 per kg (30,000 |Opening WIP 800Kg which were 50% complete. Labour & overheads Costs associated with the Opening WIP from Blending (78,800 Process were E51,500 and had added costs for materials in Thinning of $8,900 while Labour & Overhead added was Normal loss 10% E7,800 Inputs for the period Materials (68,640 and Labour & Actual Output 4,400 kg Overhead (86,304 Scrap Value of Losses 67 per unit Closing Work in Progress There was 400Kg of closing WIP which was 60% complete in respect of Labour & Overhead. There were no losses in the Thinning process