Question Three A company processes a range of products which include a chemical fertilizer which passes...

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Question Three A company processes a range of products which include a chemical fertilizer which passes through three processes before completion and transfer to the finished goods store. During the month of December 2020, the following data was obtained from the company's records: Process 1 2 3 Kshs. Kshs. Kshs. Basic raw materials (6.000 units) 10,000 Direct materials added in process 10,500 7,500 4,500 Direct wages 4,000 6,000 12,000 Direct expenses 3000 1500 2500 Production overheads Units Units Units Output 9,200 8,700 7.900 Normal loss in process of input 10% 5% 10% Scrap value Kshs. 2 Kshs. I Kshs. 0.5 Production overhead costs absorbed as a percentage of direct wages. There was no stock (inventory) at the beginning or closing of any process. Required i) Process I account 11) Process 2 account iii) Process 3 account iv) Abnormal loss a/c v) Abnormal gain a/c (25 marks) Question Three A company processes a range of products which include a chemical fertilizer which passes through three processes before completion and transfer to the finished goods store. During the month of December 2020, the following data was obtained from the company's records: Process 1 2 3 Kshs. Kshs. Kshs. Basic raw materials (6.000 units) 10,000 Direct materials added in process 10,500 7,500 4,500 Direct wages 4,000 6,000 12,000 Direct expenses 3000 1500 2500 Production overheads Units Units Units Output 9,200 8,700 7.900 Normal loss in process of input 10% 5% 10% Scrap value Kshs. 2 Kshs. I Kshs. 0.5 Production overhead costs absorbed as a percentage of direct wages. There was no stock (inventory) at the beginning or closing of any process. Required i) Process I account 11) Process 2 account iii) Process 3 account iv) Abnormal loss a/c v) Abnormal gain a/c (25 marks)