Help with Process Costing needed

Hi all. I have been watching these forums for a while and have decided to join rather than cyberstalk everyone. I have been meaning to join and get involved for a while now but am a bit of a serial procrastinator. Hence, I would like to introduce myself now and say hello to all the new and old members. My name is Natalie, I live in London and I am studying for my level 3. I am on the lookout for a study buddy or just a study mate who I can e-mail every now and again. If there is anyone who is interested and who feels like getting in touch then please PM me and I can give you my Yahoo address if you would like it (I have messenger).




I am having problems with two difficult questions that I have only managed to partially complete from the Kaplan Financial Costs and Revenues text/workbook. I would greatly appreciate any help and insight.
My problems are with the drawing up of the normal and abnormal loss accounts.


Question 1:
Y PLC have the following process costs:

Materials (1,000 litres) @ £5,000
Labour and overheads @ £427

Normal losses and gains:
Normal loss is at 10% so the normal loss is 100 litres.
The expected output is thus 1,000 litres - 100 litres = 900 litres.
The actual output is 920 litres.
920 litres - 900 litres = 20 litres abnormal gain

The normal loss scrap value is £0.27 per litre thus the normal loss scrap proceeds =
100 litres x £0.27 = £27

Output value:
£5,427 (cost of inputs) - £27 (scrap proceeds) = £5,400
£5,400/900 litres (expected output) = £6 per litre
Abnormal gain = 20 litres x £6 = £120
Output (includes abnormal gains) = 920 litres x £6 = £5,520



I am required to prepare a process account, a normal loss account and an abnormal loss account. I have managed to produce a process account with no trouble. However, I am unable to draw up the abnormal loss account and the normal loss account.






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Question 2

Company x manufacture a product that which goes through two processes. The information is as follows:

Process A:

Direct materials (2,000kg) @ £10,000
Direct labour hours @ £7,200
Process costs @ £8,400
Overheads @ £4,320
-------------
Total = £29,920




Normal and abnormal losses:
Normal loss is at 20% so the normal loss is 400kg. The scrap value of the normal loss is £0.50 per litre so the normal loss scrap proceeds = £0.50 per kg x 400kg = £200
The expected output is 2,000kg - 400kg = 1,600kg
The actual output is 1,400kg so,
1,400kg - 1,600kg = (200kg) This is an abnormal loss

Output value:
£29,920 (input costs) - £200 (scrap proceeds)/1,600kg = £18.575 per kg
Abnormal loss = 200kg x £18.575 = £3,715
Output (including abnormal loss) = 1,400kg x £18.575 = £26,005

Process B:

Input from process A (1,400kg) @ £26,005
Input materials (1,400kg) @ £16,800
Factory overheads @ £2,520
Direct labour hours @ £4,200
Process costs @ £5,800
-------------
Total = £55,325



Normal losses and abnormal gains:
Normal loss is at 10@ so the normal loss is 280kg. The expected output is therefore 2,800kg - 280kg = 2,520kg.
The actual output is 2,620kg so,
2,620kg - 2,520kg = 100kg abnormal gain

The normal loss scrap value is £1.825 per kg. The scrap proceeds are therefore 280kg x £1.825 = £511

Output value:
£55,325 (input costs) - £511 (scrap proceeds)/2,520kg (expected output) = £21.7515
Output = 2,620kg x £21.7515 = £56,989 (rounded up)
Abnormal gain = 100kg x £21.7515 = £2,175 (rounded up)

I am again required to draw up a process account, a normal loss account and an abnormal gain account as with the previous question. I have however, likewise only managed to draw up a process account.
In one instance I have managed to compile two of the other accounts and confirm the answers however, I am unable to come to any logical reasoning as to WHY the answers are what they are and not the way that I would have expected them to be.


If somebody in the community could help me then I would be extremely grateful.




Thankyou,


Natalie