Reference no: EM132567207

Desselicious Sdn Bhd produces a local dessert known as 'Bubur Kacang' in a can. The production passes through two processes: cooking process and packaging process.

The cost data for the month of December 2017 for both cooking and packaging processes were as follows :

                                                                Cooking                             Packaging

Direct Materials (10,000kg)              RM55,000                                 -

Additional Materials                            RM9,900                        RM3,360

Conversion Costs                               RM20,000                        RM5,908

Output                                             8,500kg                            7,100kg

Normal loss 10% of production 10% of production

Actual loss                                         1,500kg                                     700kg

Scrap Value                                        RM1.20                                     RM1.50

There is no opening and closing work in progress in the cooking process. The information of opening and closing work in progress for the packaging process are as follows:

Stage of completion (%)

Transfer from Additional Conversion

cooking Materials cost

Opening work in progress 100% 60% 40%

(500kg at total costs of RM2,000)

Closing work in progress (1,200kg) 100% 75% 70%

Losses in cooking and packaging processes are detected upon completion in each process. Any further losses or gains are assumed to arise at the end of each process.

Required:

Question a. Prepare cooking process account

Question b. Prepare packaging process account (Support your answer with relevant statements)