Pass-Well Company Limited produces a product that passes through two processes, Process 1 and Process 2. Details of activities for the month of December, 2020 is as follows;

Process 1

@GH200.00

200hrs 3,500units GH20 per unit

Process 2

GH25,000.00 600hrs 3,150units GH40 per unit

a. You are required to prepare the relevant accounts

b. You are required to prepare the relevant Accounts With practical example, differentiate

between cost assignment and cost apportionment; product cost and period costs; direct

Material introduced (4,000 units) Material added

Labour Costs (@GH400 per hour) Output in units

Scrap value of normal loss

Note;

i. Overhead is absorbed at 80% of labour costs.

ii. Normal loss is estimated at 10% for both process.

iii. No opening and closing stocks

cost and indirect cost