Question $3$

Product $Z$ will pass through two processes, Process A and Process B$.$

Process A

Direct material $2,000kg$ at $$5$ per $kg$

Direct labour $$7,200$

Process machine time $140$ hours at $$60$ per hour

Process $B$

Additional direct material added, $$16,740$ for an extra $1,400kg$

Direct labour $$4,200$

Process plant time $80$ hours at $$72\mathrm{.}50$ per hour

The department overhead for the period was $$6,840$ and is absorbed into the costs of each

process on direct labour cost.

There is no finished stock at the beginning of the period and no WIP at either the

beginning or the end of the period.

Required:

$($a$)$ In Process A$,$ calculate:

$($i$)$ Normal loss

$($ii$)$ Abnormal loss$/$gain

$($iii$)$ Costs per $kg$

$($iv$)$ Costs of the finished goods

$(1$ mark$)$

$(2$ marks$)$

$(2$ marks$)$

$(2$ marks$)$