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In a local factory normal loss is 10% and each scrapped unit makes Ghc 0.50 from process 1 and Ghc 3.0 from process 2
In a local factory normal loss is 10% and each scrapped unit makes Ghc 0.50 from process 1 and Ghc 3.0 from process 2 Required: Using the following information, prepare: a. Process 1 account; b. Process 2 account; c. Abnormal loss/gains account; d. Scrap account Process 1 Process 2 Direct materials added 2,000 units 1,250 units Direct material cost Ghc 8,100 Ghc 1,900 Direct labour Ghc 4,000 Ghc 10,000 Production overhead 150% direct labour 120% direct labour Output to process 2 1,750 Output to finished goods 2,800
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