Question 3 Sweet Tasty is based in Sungai Petani Kedah and makes a range of tasty confectionery, including toffee squares. Manufacturing toffee involves two production processes: mixing and cooking. All of the ingredients are added in the mixing process and combined thoroughly. Next, the toffee mix is cooked to the correct temperature and then poured into large trays. When the toffee is cool it is cut into squares and packaged. The company has adopted process costing based on the weighted average approach to value the toffee. Cost and other information relating to both processes for the month of March are provided below. Items Mixing Cooking Process Process Opening Work In Progress at 1 May * Materials (kgs) 10,000 16,000 * Labour and production overhead (RM) 24,200 43,130 Cost incurred during the month * Materials input - 40,000 kgs 108,800 Nil * Direct labour cost 84,600 45,150 * Production overhead 31,020 14,820 Transferred from mixing process (kgs] 41,000 N/A Transferred from cooking process to N/A 56,000 packaging (kgs) Normal loss expected (% material input in the 5% Nil months Scrap Value 0.60 per kg Nil Closing Work In Progress at 31" May (kgs) 6,000 Nil Note 1: All materials are added immediately in the mixing process. The opening work in progress in the mixing process at 1 May was 60% complete in relation to labour and overheads. At at 30 May it was 40% complete in relation to labour and overheads. Note 2: The opening work in progress in the cooking process at 1 May was 50% complete. Required: (a) Prepare the relevant calculations to show the physical and equivalent unit for both processes Mixing and Cooking), the cost and allocations of cost for any relevance cost elements. You should ensure that all workings are shown clearly (7 marks)(b) Prepare the following accounts, where applicable, for the month of May. L. Mixing process account. Il. Cooking process account. ill. Normal loss account. iv. Abnormal loss/abnormal gain account. (14 marks) (c) Compare the characteristics between normal loss and abnormal lost, give example. (4 marks) [ Total : 25 marks]