QUESTION 5 [25 MARKS] Harden produces and sells widgets. The following data relates to process 2...

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QUESTION 5 [25 MARKS] Harden produces and sells widgets. The following data relates to process 2 for the period just ended. Transferred in from Process 1 Additional Materials Conversion Costs Transferred to process 3 Units Rs 10,000 500,000 5,000 100,000 200,000 14,500 There were no opening and closing inventory. Normal loss in process 2 is usually 5% of the input with a nil scrap value. REQUIRED (a) Determine the cost per unit of units transferred to process 3. (b) (c) (d) [3 Marks] Prepare the process 2 account as it would appear, clearly showing the abnormal loss or gain, if any. [7 Marks] Assuming that the spoilt units can be sold to a farmer at Rs10 per unit, prepare the process 2 account as it would appear in the books of Harden. [9 Marks] Explain when process costing systems are appropriate. Give an example of an industry. [6 Marks] QUESTION 5 [25 MARKS] Harden produces and sells widgets. The following data relates to process 2 for the period just ended. Transferred in from Process 1 Additional Materials Conversion Costs Transferred to process 3 Units Rs 10,000 500,000 5,000 100,000 200,000 14,500 There were no opening and closing inventory. Normal loss in process 2 is usually 5% of the input with a nil scrap value. REQUIRED (a) Determine the cost per unit of units transferred to process 3. (b) (c) (d) [3 Marks] Prepare the process 2 account as it would appear, clearly showing the abnormal loss or gain, if any. [7 Marks] Assuming that the spoilt units can be sold to a farmer at Rs10 per unit, prepare the process 2 account as it would appear in the books of Harden. [9 Marks] Explain when process costing systems are appropriate. Give an example of an industry. [6 Marks]