Problem-3 [Treatment of normal and abnormal loss]

The manufacturing of a pro product involves two consecutives processes. The following cost and production figures are obtained in respect of each process for the moth of February.

Process 1Process 2Units introduced 1900 Units transferred to next process1760 Units transferred to finished stock 1700 Tk.Tk.Value of units introduced10450 Materials 916Labor69754190Overhead26202462

The wastage which is 5% normal in each process is sold at Tk. 2 per unit. There is no opening or closing work in progress.

Prepare the necessary accounts showing the cost per unit in each process.