Sparkling Beverages makes one of its products by way of three separate stages. Details of production for the month ending 31st January were as follows: Process Fermenting Distilling $780,000 Bottling...

Required:

i) The process account ofr each process; and

ii) The abnormal loss/gain account(s) showing Sparkling Beverages true loss/gain

Extracted text: Sparkling Beverages makes one of its products by way of three separate stages. Details of production for the month ending 31st January were as follows: Process Fermenting Distilling $780,000 Bottling Input material: 65,000 litres Material added $89,000 Direct Labour cost $114,600 $153,500 $225,600 Manufacturing Overhead Normal losses Output Scrap value of losses $122,000 $193,100 $126,000 5% 55,000 litres 53,000 litres 48,000 litres $18.00/litre $30.00/litre 8% 5% The nature of the process requires equipment to be cleaned at the end of each month; hence there is no opening or closing stock of product in process.