SANDRY ltd manufactured cooking oil and is based in Maseru. SANDRY uses process costing to account for the costs associated with the production process. SANDRY uses two production processes to complete its manufacturing process. The input in process 2 is output from process 1. Any normal losses will be sold at scrap value.

The following information relates to the eight-week period ending 31 July 2022.

Raw material issued to process 1 was 4,500 gallons @ BWP7.50 per gallon.

There was no opening or closing work in progress.

	Process 1	Process 2
Normal loss	5.0%	8.0%
Output (gallons)	4,425	3,975
Scrap value per gallon (BWP)	BWP3.00	BWP7.50
Direct labor	BWP6,000	BWP9,000
Direct expenses	BWP12,500	BWP16,560
Production Overheads	75% of Direct labor	110% of direct labor

Required

The manager has requested you to prepare process account 1 only showing clearly output to be transferred to process 2