Chemical processors manufacture wondercool using two processes- mixing and distillation. The following details relate to the distillation process for a period.
No opening work in progress
Input from Mixing 36,000kg at a cost of K166,000
Labour for the period K43,800
Overheads for the period K29,200
Closing work in progress of 8,000kg, which was 100% complete for materials and 50% complete for labour and overheads.
The normal loss in distillation is 10% of fully complete production. Actual loss in the period was 3,600kg, fully complete, which was scrapped.
a) Calculate the normal loss and therefore abnormal loss or gain.
b) Prepare the distillation process a/c for the period, showing clearly weights and values