PART B QUESTION 1 Citra Sedap Food Sdn Bhd produces three products by passing raw materials through two consecutive processes. The output from the first process is transferred into the second process for further processing and consequently at end of the process, two (2) joint products (Blossom and Buttercup) and a by-product (Bubbles) emerge. Bubbles requires further processing cost of RM3 per kg before being sold to other manufacturer. The management of the company has decided to value the opening work in process using First-In-First-Out (FIFO) method, and to allocate the joint costs based on the physical measure method. Any proceeds from by-product will be used to reduce the joint costs. The following information relates to the second process for the period just ended. Opening Work in Progress Degree of completion: Materials transferred from First Process Materials added Conversion costs Materials transferred from First Process Materials added Closing Work in Progress Conversion costs Degree of completion: Materials added Conversion costs 500kg RM27,370 100% 80% 50% 3,500kg RM175,380 200kg RM16,928 RM30,320 400kg 70% 60% Expected loss - 5% of total production with scrap value is RM3.00 per kg. Actual output Blossom Buttercup Bubbles Selling price Blossom Buttercup Bubbles Required: 1,400kg 1,800kg 500kg RM130 per kg RM100 per kg RM8 per kg a. Prepare Second Process account by showing all the relevant statements. (27 marks) b. Calculate the net profit obtained by each product. (3 marks) (Total: 30 marks)