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Question - Pogba Manufacturers produces a product in two phases details of the two processed for a period was as follows:
Process 1: Raw material: 6 000 kgs at $50 per kg Direct labour $ 66 000 Production overheads $ 56 100 Normal loss 10% of input Scrap value per unit: $10
Process 2: Added materials: 1500 kg at $40 per kg Direct labour: $ 49 000 Production overheads: $ 10 000 Normal loss: 15% of total input Scrap value per unit: $15 Actual outputs for the two processes were as follows: Process 1: 5 500 kgs Process 2: 6 000 kgs
Required -
A. Prepare the process 1 & 2 accounts.
B. Prepare the Abnormal Loss & Abnormal Gain accounts.
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