Reference no: EM132811153

A company manufactures two joint products in a common process, which consists of two consecutive stages. Output from Process 1 is transferred to Process 2, and the output from Process 2 consists of the final joint products X and Y. All the joint products are sold as soon as they are produced. There were no opening and closing inventories for both processes.

The following information was available for the latest accounting period:
                                                              Process 1                         Process 2
Direct material      300 units
Cost per unit of direct material $30
Conversion costs                               $5,000                    $18,000
Normal loss                                  10% of input                 15% of input
Scrap value of normal loss                  $4 per unit                  $6 per unit
Output
240 units                                              90 units of X         60 units of Y

The company uses unit basis of apportionment for common process costs.

Required:

Problem a. Prepare the process accounts for Process 1 and Process 2.