Abnormal loss account and abnormal gain account, Cost Accounting

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A product is manufactured by passing through three processes: A, B and C. In process C a by-product is also produced which is then transferred to process D where it is completed. For the first week in October, actual data included:

	Process A	Process B	Process C	Process D
Normal loss of input (%)	5	10	5	10
Scrap value ($ per unit)	1.50	2.00	4.00	2.00
Estimated sales value of by-product ($ per unit)	-	-	8.00	-
Output (units)	5,760	5,100	4,370	-
Output of by-product (units)	-	-	510	450

	$	$	$	$
Direct materials (6,000 units)	12,000
Direct materials added in process	5,000	9,000	4,000	220
Direct wages	4,000	6,000	2,000	200
Direct expenses	800	1,680	2,260	151

You are required to prepare:

(a) Accounts for process A, B, C and D

(b) Abnormal loss account and abnormal gain account

Note: Assume that overheads are to be absorbed using the direct wages percentage method.

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