Page 155 - Microsoft Word - 00 ACCA F2 Prelims.docx

Process costing

Step 4 – value the output and complete the process account

Process account
Kg $ Kg $
Materials 1,000 18,000 Output 800 18,240

Labour 1,800 Normal loss 100 180

Overheads 900 Abnormal loss 100 2,280
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1,000 20,700 1,000 20,700

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Step 5 – complete the normal loss (scrap) and abnormal loss accounts

Normal loss (scrap) account
Kg $ Kg $

Process 100 180 Cash/Bank 200 360
account (NL)

Abnormal loss 100 180
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200 360 200 360
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Abnormal loss

Kg $ Kg $
Process 100 2,280 Normal loss 100 180
account (AL)
SoPL 2,100

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100 2,280 100 2,280

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