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Haikal Manufacturing produces Tongkat Aliah by putting it through two sequential processes. You are given the following details for November 2019: Process 1 Material costs
Haikal Manufacturing produces Tongkat Aliah by putting it through two sequential processes. You are given the following details for November 2019: Process 1 Material costs 4,000 kilos at RM2.50 per kilo Labour costs 1,000 hours at RM6.00 per hour Overhead costs 125% of labour costs Transfer to Process 2 3,600 kilos Process 2 Additional material RM2,000 Labour costs RM12,000 Overhead costs 125% of labour costs Transfer to finished goods 3,250 kilos Additional information: A normal loss of 5% of input is expected in each process. ii) The losses which arise in Process 1 have no scrap value, while those arising in Process 2 can be sold for RM3.00 per kilo. iii) There was no opening and closing work in progress. Required: a) Prepare the following accounts: 1) Process 1 ii) Process 2 iii) Normal loss iv) Abnormal loss/gain (if any)
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