[ategyeka]

In RAFA (U) Ltd, their product passes through two processes of melting
and fabrication. A normal loss of 2% is allowed in melting and 5% in
fabrication. The disposal of scrap fetches Shs. 1,500 per unit. There were
800 units of finished product at the end of July 2002. During August 2002,
20,000 units of materials costing Shs. 8,000 per unit were introduced into
the melting process. Below are other costs:
Melting Process Fabrication Process
Shs Shs
Labour 10,000,000 6,000,000
Materials – 7,000,000
Overheads 4,000,000 4,000,000
Output from the Melting Process were 19,200 units; 19,000 units were
produced by Fabrication which were warehoused.
Required:
Prepare the Process Accounts.

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