(Solution) - A product is manufactured by passing through three processes A -(2025 Original AI-Free Solution)

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A product is manufactured by passing through three processes: A, B and C. In process C a by- product is also produced which is then transferred to process D where it is completed. For the first week in October, actual data included:

Budgeted production overhead for the week is £30 500. Budgeted direct wages for the week are £12 200. You are required to prepare:
(a) Accounts for process A, B, C and D.
(b) Abnormal loss account and abnormal gain account.