Calculate the value of normal loss, abnormal gain, and finished goods if the actual output is 4,650 kilos.

Here are the process account and abnormal loss/gain accounts for the period. Common Data Used: Input materials: 5,000 kilos Normal loss: 10% of input = 500 kilos Expected output: 4,500 kilos Total cost incurred: KSh 40,500 Scrap value per kilo of normal loss: KSh 2.7 Cost per kg (calculated in part c)): KSh 8.70 b) i) If the actual output is 4,650 kilos Step 1: Calculate abnormal gain. Abnormal gain = Actual output - Expected output Abnormal gain = 4,650 kilos - 4,500 kilos = 150 kilos Step 2: Calculate the value of normal loss. Value of normal loss = 500 kilos × KSh 2.7/kilo = KSh 1,350 Step 3: Calculate the value of abnormal gain. Value of abnormal gain = 150 kilos × KSh 8.70/kilo = KSh 1,305 Step 4: Calculate the value of finished goods. Value of finished goods = 4,650 kilos × KSh 8.70/kilo = KSh 40,455 Step 5: Prepare the Process Account. l|r||l|r 4cProcess Account \\ Particulars & KSh & Particulars & KSh \\ To Cost Incurred & 40,500 & By Normal Loss (Scrap) & 1,350 \\ To Abnormal Gain & 1,305 & By Finished Goods A/c & 40,455 \\ & 41,805 & & 41,805 \\ Step 6: Prepare the Abnormal Gain Account. l|r||l|r 4cAbnormal Gain Account \\ Particulars & KSh & Particulars & KSh \\ To Process A/c & 1,305 & By Income Statement & 1,305 \\ & 1,305 & & 1,305 \\ b) ii) If the actual output is 4,400 kilos Step 1: Calculate abnormal loss. Abnormal loss = Expected output - Actual output Abnormal loss = 4,500 kilos - 4,400 kilos = 100 kilos Step 2: Calculate the value of normal loss. Value of normal loss = 500 kilos × KSh 2.7/kilo = KSh 1,350 Step 3: Calculate the value of abnormal loss. Value of abnormal loss = 100 kilos × KSh 8.70/kilo = KSh 870 Step 4: Calculate the value of finished goods. Value of finished goods = 4,400 kilos × KSh 8.70/kilo = KSh 38,280 Step 5: Prepare the Process Account. l|r||l|r 4cProcess Account \\ Particulars & KSh & Particulars & KSh \\ To Cost Incurred & 40,500 & By Normal Loss (Scrap) & 1,350 \\ & & By Finished Goods A/c & 38,280 \\ & & By Abnormal Loss & 870 \\ & 40,500 & & 40,500 \\ Step 6: Prepare the Abnormal Loss Account. l|r||l|r 4cAbnormal Loss Account \\ Particulars & KSh & Particulars & KSh \\ To Process A/c & 870 & By Income Statement & 870 \\ & 870 & & 870 \\