Question 3 JJ has a factory which operates two production processes, cutting and pasting. Normal loss in each process is 10%. Scrapped units out of the cutting process sell for $3 per unit whereas scrapped units out of the pasting process sell for $5. Output from the cutting process is transferred to the pasting process: output from the pasting process is finished output ready for sale. Relevant information about costs for control period 7 are as follows. Pasting process Units MVR Cutting process Units MVR 18,000 54,000 16,000 Input materials Transferred to pasting process Materials from cutting process Added materials Labour and overheads Output to finished goods Required Prepare accounts for the cutting process, the pasting process, abnormal loss, abnormal gain and scrap. 16,000 14,000 70,000 32,400 135,000 28,000