Case 2: Losses in processes reducing process waste in UHT milk production: The term TetraPak is one which is familiar to most consumers it is the name you will see on the card cartons in which milk, juice and other liquid products are frequently packaged. The Tetra group offers a broader range of food processing solutions besides the TetraPak. For example, they offer a processing solution which can reduce the wastage in UHT milk production. UHT milk is processed from normal milk and, once processed, passed to a sterile filling machine. However, like most food processing equipment, both the milk processing equipment and the filling machine need to be cleaned regularly. If the filling machine requires cleaning, product loss can occur, increasing the overall process waste. Tetras solution to reducing the process waste is to install an aseptic holding tank between the processing equipment and the filling machine. This tank holds the milk temporarily in a sterile environment. This means that the filling machine or the UHT processing equipment can be cleaned without the process stopping, or without any loss or impairment of product. Questions: a. Do you think waste which is regarded as normal in a process should remain unchallenged? Justify your answer with suitable example. b. How would you value waste in the UHT milk production described above? Explain with an example.

Case 1: A particular band of phenyl passes through three important processes. During the week ended 15th January, 2021, the cost book show the following information: 600 gross of bottles are produced. Process 1 Process 2 Process 3 Materials R0 4000 R0 2000 R0 1500 Labor R0 3000 R0 2500 R0 2300 Direct Expenses RO 600 RO 200 R0 500 Cost of Bottles Nil R0 2030 Nil Cost of Corks Nil Nil R0 325 The indirect expenses for the period were RO 1600 (on the basis of Labor Ratio) The bi-product were sold for RO 240 (Process 2) The residue sold for RO 125 (Process3) Questions: a. Prepare the accounts in respect of each of the processes showing its cost and cost of production of the finished product per gross of bottles. (3 Marks) b. Suggest measures to the management for controlling abnormal material waste. (2 Marks)