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Process costing
Step 4 – value the output and complete the process account
Process account
Kg $ Kg $
Materials 1,000 18,000 Output 900 20,520
Labour 1,800 Normal loss 100 180
Overheads 900
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1,000 20,700 1,000 20,700
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Step 5 – complete the normal loss (scrap) account
This is the account where the value of the cash received for the scrap is recorded
Normal loss (scrap) account
Kg $ Kg $
Process account 100 180 Cash/Bank 100 180
(NL)
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100 180 100 180
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