Question 2 b-(11 marks) A company had 50,000�kg of Bento into its pro.pdf

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Question 2 b-(11 marks) A company had 50,000kg of Bento into its production process. Normal loss is expected to be 10% of input and the costs associated with the process was $855,000 and there was no ending work-inprogress. The scrap value of losses is estimated to be $10.80 per kg. Calculate: a. The cost per kg. if output was (i) 46,500kg. and (ii) 44,000kg. (3 marks) b. The value of the abnormal gain/loss. (2 marks) c. Prepare the process accounts to reflect the abnormal gain/loss. (6 marks).

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