Question 2 (No OWIP But with CWIP Using Average Method (Equivalent Units)

Process 1:

Input materials (24000kg) =RM168,000
Additional materials (negligible weight) –
Labour =RM 52,800
Overheads =RM10,500

Process 2:
Input materials (24000kg) –
Additional materials (negligible weight) =RM8740
Labour =RM49,875
Overheads =RM32,110

Process 1
There were no process losses and 19,000 kgs were transferred to Process 2. The unfinished production at
the end of the month was complete as to materials and 60% complete as to labour and 40% complete as to
overheads.
Process 2
The normal process loss is 5% of input. The loss can be sold as scrap for RM2 per kg. Completed good
production was 15,200 kgs. The unfinished production at the end of the month was estimated to be 50%
complete as to labour and 30% complete as to overheads.
Required:
For the month of July 2000, prepare accounts for:
(a) Process 1 and Process 2; (ANSWER: TRANSFER TO PROCESS 2:RM188,100, COMPLETED OUTPUT:RM240,160
(b) Process loss or gain. (ANSWER:NORMAL LOSS=RM1,900)

May I know how to solve this problem?