Product ABC is obtained after it passes through two distinct processes. The following information is available for the operation:

PROCESS 1 PROCESS 2

Materials $66 000 $75 000

Direct wages $35 250 $45 650

Manufacturing O/Hs $24 000 $20 000

Input Units 5 900 4 898

Actual Output transferred 5 480 5 230

Value of scrap per unit $2 $4

Normal loss on input 15% 20%

Required:

Prepare the following. Show all computations.

i. The Process A/cs.

ii. The Abnormal Gain/Loss A/c(s).