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answer the blow question for cost and management accounting for me

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QUESTION 10 2.jpg

UESTION TEN
A company within the chemical industry located along Cairo road in‘ Lusaka mixes powdered ingredients in two different processes to produce ladies lotion known as
“Tina”. The output of Process I becomes the input of Process 2 and the output of
Process 2 is transferred to the packing department as finished product. The company
uses the weighted average method of inventory valuation. Output from process 1 is 9,200kg at a valuation of K2 per kg in the process account at
that stage. Information regarding process 2 as extracted from the? engineer's preliminary report is set out as follows:- Material C . 6,600 kilograms at K2.50 per kilogram
Material D 4,200 kilograms at K1.50 per kilogram
Flavouring Essence K600 Mixing Labour ' 370 hours at K4 per hour Overhead Costs K2,960 Normal Waste 5% of weight input with no disposal value
OUtput . 18,000 kilograms No work in process at the “beginning of the week but 1,000 kilograms in process at the '
‘ end of the week and estimated to be only 50% complete so far as labour and overhead
were concerned. Overhead of K6,400 incurred by the two processes to be absorbed on the basis of mixing labour hours. Required: ‘
a) Prepare a schedule of the equivalent units for Process 2 (8 marks)
b) Calculate the full cost per unit that would be used to value output in Process 2 ‘ (4 marks)
c) Prepare the Process 2 account (8 marks) [Total: 20 marks]

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