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1,500 kg of raw material, whose price was £18 per kg, were input to a process in a period. Conversion costs totaled £120,000. Losses, in the form of reject product, are normally 8% of input. Reject product is sold for £3 per kg. Actual loss during the process was 100 tonnes. There was no work-in-progress either at the beginning or the end of the period.
Required:
Prepare the process account, including any abnormal losses/gains.There is no point in simply typing out full questions and expecting to be provided with a full answer.
You must have an answer in the same book in which you found the question, so ask about whatever it is in the answer that you are not clear about and then I will explain.
Everything necessary for the exam is explain in my free lectures on process costing. Have you watched them?
You cannot be asked to prepare the actual t-accounts in the exam!
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