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QUESTION TWELVE A chemical compound is made by raw material being

processed through two processes. The output of Process A is passed to Process B where further material is added to the mix. The details of the process costs for the financial period number 10 were as shown below: Process A Direct material 2000 kilograms at 5,000 per kg Direct labour Tsh 7,200,000 Process plant time 140 hours at Tsh 60,000 per hour Process B Direct material 1400 kilograms at Tsh 12,000 per kg Direct labour Tsh 4,200,000 Process plant time 80 hours at Tsh 72,500 per hour The departmental overhead for Period 10 was Tsh 6,840,000 and is absorbed into the costs of each process on direct labour cost. Process A Process B Expected output was 80% of input 90% of input Actual output was 1400 kg 2620 kg Assume no finished stock at the beginning of the period and no work in progress at either the beginning or the end of the period. Normal loss is contaminated material which is sold as scrap for Tsh 500 per kg from Process A and Tsh 1,825 per kg from Process B, for both of which immediate payment in cash is received. You are required to prepare the accounts for Period 10, for i. Process A, ii. Process B,

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