Question

Tutorial 3 Question 1 (24 Marks – 43 Minutes) Supp 2013 NovJonca CC manufactures a single product in a single process and usesa process costing system. The following information for March 2013is available: Work in process - 1 March 2013 45 000 units -Material - 100% complete N$180 000 - Conversion costs - 60%complete N$78 750 Material issued for 186 000 units N$651 000Conversion costs N$381 915 Units completed 160 500 units Work inprocess - 31 March 2013 27 000 units - Material - 100% complete -Conversion costs - 40% complete I. Material is added at thebeginning of the process. Conversion costs are incurred evenlythroughout the process. II. Normal spoilage is estimated at 10% ofinput. III. Losses occur when the process is 50% complete. Page 20of 66 IV. The first-in-first-out (FIFO) method of inventoryvaluation is used. REQUIRED: Marks Prepare the following statementsfor March 2013: 1.1 Quantity statement (inclusive of equivalentunits) 11 1.2 Production cost statement per unit 4 1.3 Costallocation statement 9 TOTAL MARKS 24