Question 1 (20 Marks) Lolita manufactures a product whereby the initial raw material passes through two processes (Process One and Process Two). The output of Process One is passed to Process Two where further raw material is added. Direct costs and outputs for the month just ended were: Process One Initial raw material 1900kgs costing 40,000 Direct labour 76,800 Expected output 85% of input Transfer to Process Two 1575kgs Process Two Raw material added 1425kgs costing 60,000 Direct labour 78,300 Expected output 90% of input and materials added Actual output 2760kgs There was no work in progress at either the beginning or the end of the month. Overheads for the month, totalling 84,000, are apportioned between the two processes as follows: Process One 60% Process Two 40% Losses that arise from the processes are sold for scrap Process One losses are sold for 20 per kg Process Two losses are sold for 18 per kg REQUIRED Prepare for the month just ended: (a) Process One account (b) Process Two account (c) Normal loss/gain account (d) Abnormal loss/gain account (6 marks) (6 marks) (4 marks) (4 marks)