Samba Ltd. produces three joint products in two processes.All the units pass through process I to process II.At the end of process II, the joint products emerge.The data below relates to the operations for the first quarter of 2001.

Process I

Process II

Shs.

Shs.

Direct materials (40,000kg @ Sh 2.50)

100,000

-

Direct labour

60,000

92,000

Overheads

40,000

118,000

Normal loss as a percentage on input

10%

-

Scrap value per unit

Sh 2

Output in units:

35,000

No loss is expected in process II.

Required:

a)Process I account.(6 marks)

b)Abnormal loss/gain account.(4 marks)

c)Determine the profits or losses from each joint product if costs are apportioned using sales value method(5 marks)