Q-Chem Sdn. Bhd manufactures chemical products and sells to industrial manufacturing business. The chemical products are made in a series of three processing departments namely D-1, D-2 and D-3. During the month of November 2021, the following data were obtained from the company records: Process D-2 KG RM Transfer from Process D-1 (input) Direct materials added (input) Direct labour cost 24,000 10,000 2.80 per kg 0.70 per kg 15,400 Process D-3 RM Materials added cost Direct labour cost Direct expenses 5,000 8,000 2,000 Additional information: i. The company expected loss for all processes was 5% of input. ii. Overhead cost is to be absorbed at 50% of direct labor cost for each process. iii. The following actual output were recorded for each process: Process D-2 = 32,800 kg Process D-3 = 30,200 kg %3D %3D iv. Losses in Process D-2 and Process D-3 can be sold at scrap value of RM0.30 per kg and RM0.50 per kg respectively. v. Cost per unit is to be calculated to four decimal places and all other calculations are to be rounded up to nearest ringgit. Required: a. Prepare Process D-2 and D-3 accounts (show all the workings). (16 marks) b. Differentiate normal loss and abnormal loss by giving an example for each. (5 marks) c. Describe the nature of companies which appropriate to apply process costing method. (4 marks)