[traviana]

Grace Foods produces Curry Powder by mixing certain ingredients within two processes only – Process C and Process P. For the month of October 2010, the recorded cost data were as follows:- Process C - Material: 20,000 lbs @ $3 per lb. Labour: $46,800 Other Direct Costs: $4,880 Process P - Material: 31,000 lbs @ $6 per ib. Labour: $31,200 Other Direct costs: $4,965 Indirect production overhead for the month amounted to $24,000 and was absorbed by each process on the basis of labour cost. Normal Output - Process C: 80% of input. Process P: 90% of input. Discarded materials have scrap values of $0.32 per lb from Process C and $1.70 per lb from Process P. Sales of scrap were made for cash during the month. There was no work-in-process inventory either at the beginning or ending of the month. Also, there was no finished goods inventory at the beginning of the month. Output during the month was 14,000 lbs from Process C and 42,000 lbs from Process P.40, 000 lbs of Curry Powder was sold for the month of October. Required: Prepare the following accounts for the month of October:- I) Process C ii) Process P iii) Abnormal Gain and/or Loss iv) Finished Goods