You as a senior costing analysis, your manager has asked you to prepare process costing for Big Butter Cookies.

Information relating to the inputs used in May 2021 is as follows:

Material flour 5,000 kilograms costing RM6.20 per kilogram

Material sugar 4,000 kilograms costing RM10.00 per kilogram

Material butter 1,000 kilograms costing RM4.40 per kilogram

Direct labour 500 hours costing RM9.50 per hour

Overheads Absorbed at a rate of RM20.00 per direct labour hour.

Additional information related to product Big Butter Cookies.:

The expected output is 95% of inputs.

Any scrap can be sold at a value of RM2.50 per kilogram.

The selling price for a product is RM25.00 per kilogram.

During May 2021, the amount of good output obtained was 9,650 kilograms.

Big Butter Cookies required you to prepare:

a) The process account, normal loss account, and abnormal loss/gain account for May 2021.

b) Calculate the profit per kilogram for the product.

c) Explain the terms of joint product and by-product to your junior who recently joint your department.