Reference no: EM132579397

Plastico Limited makes plastic bottles through two processes, moulding and finishing. Each bottle takes 1.5 kilogrammes of plastic material. The manufacturing design involves an estimated 5% loss on input in the moulding process but no loss is expected in the finishing process.

The following results are available for the year ended 31 October 1997:

Input of plastic materials        7,500 Kg

Output of moulded bottles      4,750 bottles

Output of finished bottles       4,600 bottles

Cost of plastic materials       Sh.4.00 per Kg

Moulding costs                    Sh.24.00 per bottle

Finishing costs                    Sh.16.00 per bottle

Required

Question i) Process accounts for moulding and finishing showing clearly the normal and abnormal losse