The following information relates to a manufacturing process for a period:

10 000 units of output were produced by the process in the period, of which 420 failed testing and were scrapped. Scrapped units normally represent 5 per cent of total production output. Testing takes place when production units are 60 per cent complete in terms of labour and overheads. Materials are input at the beginning of the process. All scrapped units were sold in the period for £0.40 per unit.
Required:
Prepare the process accounts for the period, including those for process scrap and abnormal losses/gains.

Transcribed Image Text:

Materials costs Labour and overhead costs £16445 £28596