A company manufactures paint from two sequential processes (P1 and P2). Details for P1 for a period were as follows:
|
Input materials |
20,000 litres costing £114,000 |
|
Conversion costs |
£176,000 |
|
Opening work in progress |
nil |
|
Transferred to P2 |
15,000 litres |
|
Normal loss |
5% of input |
|
Abnormal loss |
500 litres |
|
Closing work in progress |
3,500 litres (complete in respect of materials, 60% converted) |
The company uses the weighted average method of process costing. All losses occur at the end of the process. Prepare the P1 Process Account for the period.