Akrofufu Ltd makes a product by working on raw materials in two processes. The output of Process 1 is moved through Process 2 where further processing takes place. The details of the process costs for 2019 are summarised below:

Item Process 1 Process 2

Direct materials 2,000 kg @ 5 per kg 1,400 kg @ 12 per kg

Direct labour cost 7,200 4,200

Machine time 140 hours @ 60 per hour 80 hours @ 72.50 per hour

Expected output 80% of input 90% of input

Actual output 1,400 kg 2,620 kg

The following additional information are provided:

1.The general overheads for 2019 was 6,840 and it is to be absorbed into the costs of each process on the basis of direct labour costs.

2.There are no opening inventories of finished goods and there are no opening and closing inventories of work-in-progress.

3.Normal loss represents contaminated materials which are sold as scrap for 0.50 per kg from Process 1 and 1.83 per kg from Process 2.

Required:

a)Calculate the following in kg:

i.Normal loss in Process 1

ii.Normal loss in Process 2

iii.Abnormal loss or gain in Process 1

iv.Abnormal loss or gain in Process 2

b)Calculate the cost per kg (unit cost) in Process 1 and Process 2

c)Construct accounts for Process 1 and Process 2