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(Contd.) Value of work-in-process Material (350 units x 24.50) Conversion costs (175 units X 26.50) Value of abnormal loss Materials (50 units x 14.50) Conversion

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(Contd.) Value of work-in-process Material (350 units x 24.50) Conversion costs (175 units X 26.50) Value of abnormal loss Materials (50 units x 14.50) Conversion costs (40 units X 26.50) 31,575.00 1,137.50 2,712.50 225 260 485 100 50 j29 350 Process B Account Particulars Units Amount Particulars Units Amount To materials 10,000 230.000 By normal loss 3100 To direct materials 14,650 By abnormal loss 485 To labour 21.148 By finished stock To overheads 42.000 @ 211 per unit 9,500 1,04,500 By work-in-process inventory 2,713 10,000 1,07,798 10,000 1,07,798 (d) Abnormal Loss Account Particulars Units Amount Particulars Units Amount To process B 50 3485 By sales 50 2125 By costing profit and loss Alc 360 50 485 50 485 P.14.5 A company within the food industry mixes ingredients in two different processes to produce one product. The output of process 1 becomes the input of process II and the output of process II is transferred to the packing department. From the information given below, you are required to open accounts for process I, process II, abnormal loss and packing department and to record the transactions for the week ended May. Process 1 Input: Material A 600 kgs at 25 per kg Material B 400 kgs at 210 per kg Mixing labour 43 hours at 20 per kg Normal loss 5 per cent of weight input, disposed of at 21.60 per kg Output 920 kgs Process II Input: Material 660 kgs at 12.50 per kg Material D 420 kgs at 7.50 per kg Flavouring essence 2330 Mixing labour 37 hours at 20 per hour Normal waste 5 per cent of weight input with no disposal value Output 1.800 kgs No work-in-process at the beginning of the week but 100 kgs in process at the end of the week and estimated to be only 50 per cent complete so far as labour and overheads were concerned. Overhead of 3,200 incurred by the two processes to be absorbed on the basis of mixing labour- hours

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