Prepare a Process Account and Abnormal Loss Account from the following information. Input of Raw material 1000 units @ 20 per Unit Direct Material 34,200/- Direct Wages 36,000/- Production Overheads 36,000/- Actual output transferred to process II 900 units Normal Loss 5% Value of Scrap per unit 38/ Cr. Units Amount in 50 400 50 1.884 900 39,916 Dr. Particulars Units Amount in particulars To Basic material 1.000 20,000 By Normal Loss To Direct Material 4,200 By Abnormal Loss To direct labour 6,000 By Process II (Output To Production overhead 6,000 transferred to next processes) 36,200 Working Notes: Cost of abnormal Loss: Total Cost increased - Sales value of Scrap x abnormal units Input units - Normal Loss Units 36,200 36200-400 x 50 1000 - 50 It has been assumed that units of abnormal loss have also been sold at the same rate i.e. of Normal Scrap Abnormal Loss Account Units Units Particulars To Process 1 A/C 50 50 Amount in Particulars 1884 By Bank Account By Costing P & L Alc. 1884 Amount in 400 1484 1884 50 50 [18 Illustration 10: (Normal / Abnormal Loss and Abnormal Gain) The product of a company passes through 3 distinct process. The following information is obtained from the accounts for the month ending January 31, 2014 Particulars Process -A Process - Process - C Direct Material 7800 5940 8886 Direct Wages 6000 9000 12000 Production Overheads 6000 9000 12000 3000 units @ 3 each were introduced to process - 1. There was no stock of materials or work in progress. The output of each process passes directly to the next process and finally to finished stock A/C. The following additional data is obtained: Process Output Normal Loss in % Realisable Value of Scrap Process 1 2,850 5% 2 Process 2 2,520 10% 4 Process 3 2.250 15% Prepare Process Cost Account Normal Loss Account and Abnormal Gain or Loss Account