QUESTION NINE Chikumbuso Ltd manufactures a range of products and the data below refer to one product which goes through one process only. The company operates a reporting system for process and product costs and the data given below relate to period 3. There was no opening work-in-progress inventory. 5,000 units of material at K776.18 per litre were input at the start of the process. Materials added Direct wages incurred Production overhead Normal loss is 3% of input. 2,766,000 1,311,000 1,494,000 Closing work-in-progress was 800 litres but these were incomplete, having reached the following percentages of completion for each of the elements of costs as follows: Materials Direct wages Production overhead 50 270 litres were scrapped after a quality control check when the litres were at the following degrees of completion. Materials Direct wages Production overhead 66 V4 33 34 16 12 Litres scrapped, regardless of the degree of completion, are sold for K200 per litre. Required: (1) Prepare the following: - Process account - Statement of equivalent units, - Statement of cost per equivalent units and - Statement of valuation (7 marks) (4 marks) (2 marks) (4 marks) (ii) Prepare the abnormal gain or loss account (3 marks) [Total: 20 marks] QUESTION NINE Chikumbuso Ltd manufactures a range of products and the data below refer to one product which goes through one process only. The company operates a reporting system for process and product costs and the data given below relate to period 3. There was no opening work-in-progress inventory. 5,000 units of material at K776.18 per litre were input at the start of the process. Materials added Direct wages incurred Production overhead Normal loss is 3% of input. 2,766,000 1,311,000 1,494,000 Closing work-in-progress was 800 litres but these were incomplete, having reached the following percentages of completion for each of the elements of costs as follows: Materials Direct wages Production overhead 50 270 litres were scrapped after a quality control check when the litres were at the following degrees of completion. Materials Direct wages Production overhead 66 V4 33 34 16 12 Litres scrapped, regardless of the degree of completion, are sold for K200 per litre. Required: (1) Prepare the following: - Process account - Statement of equivalent units, - Statement of cost per equivalent units and - Statement of valuation (7 marks) (4 marks) (2 marks) (4 marks) (ii) Prepare the abnormal gain or loss account (3 marks) [Total: 20 marks]