Prepare the following completed accounts for the most recent financial period. You should show all workings clearly.(i) Thinning process account(ii) Fusing process account(iii) Normal loss account(iv) Abnormal loss/Abnormal gain account

Connaught Limited manufactures a liquid compound for the pharmaceutical industry. The company uses a process costing system based on the weighted average method to value production and inventory. There are two main processes used in the production of the compound. Firstly, Thinning, where various compounds are combined, and then Fusing where the mixed materials are heated and blended. All raw materials are introduced at the start of the Thinning process and the completed output is transferred to the Fusing department. No additional materials are input during the Fusing process. Labour and production overheads are incurred evenly throughout both Thinning and Fusing processes. Information relating to the most recent nancial period is shown below: Opening WIP Nil 20,000 Kgs l Inputs in period 160,000 Kgs Completed and transferred 108,000 Kgs 1 10,000 Kgs Closing WIP 48,000 Kgs 16,000 Kgs Other information: 1. The company expects a normal loss of 3% of materials input to the Thinning process. No loss is expected to occur in the Fusing process. Any losses arising can be sold for a scrap value of 0.20 per Kg. 2. Costs relating to the process are as follows: Thinning Fusing Opening WIP Prior process costs from Thinning process 19,400 Labour & Overheads Nil 2,985 I Input to process I Materials 39,960 } Nil Labour 8: Overheads 50,880 I 47,415 | 3. Closing work in progress in the Thinning department was fully complete in terms of materials and 40% complete in terms of Labour & Overheads. Closing work in progress in the Fusing department was fully complete in terms of prior process costs and 50% complete in terms of Labour 8.: Overheads