Question 12.RQ57: A cleansing detergent is manufactured by passing raw materia...

A cleansing detergent is manufactured by passing raw material through two processes. The details of the process costs for Process 1 for April were as follows:

Opening work in progress       5,000 litres valued as follows:
                                                           Material cost                                  £2,925
                                                           Conversion costs                            £6,600
Raw material input              50,000 litres valued at a cost of         £37,500
Conversion costs                                £62,385

Normal loss is 3% of the input during the period and has a scrap value of £0.20 per litre. It is company policy to deduct the income from the sale of normal loss from that period’s materials cost.

Actual output to Process 2          49,000 litres
Closing work in progress             4,000 litres, which were 100% complete for materials and
                                                           40% complete for conversion costs.

A template that could be used to calculate the cost of the output from Process 1 is shown below. The template has been partially completed

OWIP = Opening work in progress
CWIP = Closing work in progress

(a) The value to be inserted in the table at A is £ \boxed{ \ \ \ \ \ \ \ \ \ \ }
(b) The total value of the transfers to process 2 is £  \boxed{ \ \ \ \ \ \ \ \ \ \ }
(c) The value of the abnormal loss is £  \boxed{ \ \ \ \ \ \ \ \ \ \ }
(d) The value of the closing work in progress is £ \boxed{ \ \ \ \ \ \ \ \ \ \ }