Reference no: EM132628947

Bolder Chemicals limited manufactures a product, Zander, within two separate processes. For the week ended September 24, 2019 the details were:

Process 1

Materials input, 4000kilos @$3 per kilo

Labour $1840

Overheads $2150

Process 2

Materials input 2,200kilos @4 per kilo

Labour $1420

Overheads 41050

Normal output are:

Process 1, 90% of input

Process 2, 80% of input

All losses have a scrap value of $0.50 per kilo

Output during the week was 3,700 kilos from Process 1 and 4,600 kilos from Process 2.

Required:

As the accounts assistant at Bolder Chemicals Limited you are asked to prepare:

Question a. The process 1 account for the week ended 24 September 2019

Question b. The process 2 account for the week ended 24 September 2019

Question c. Distinguish between normal and abnormal loss and state how the balances on the abnormal loss and abnormal gain accounts are treated at the end of the accounting period