Saigon Ltd is a manufacturing Company that produces a product in two stages details of the two

processed for a period was as follows:

Process 1

Raw material: 6 000 litres at $ 50 per litre

Direct labour $ 60 000

Production overheads $ 75 000

Normal loss 10% of input

Scrap value per unit: $ 5

Process 2

Added materials: 2000 litres at $ 20 per litre

Direct labour: $ 20 000

Production overheads: $ 10 000

Normal loss: 20% of total input

Scrap value per unit: $10

Actual outputs for the two processes were: Process 1-5,000 litres and

Process 2-6,000 litres.

Please show step by step working please