Tutorial 3 Question 1 (24 Marks – 43 Minutes) Supp 2013 Nov Jonca CC manufactures a...

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Accounting

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

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1 Quantity statement inclusive of equivalent units Opening work in progress 45000 units Material issued 186 000 units Total units 231000 units equivalent units FIFO Material Convertion cost completed units from Opening work in progress 45000 18000 40 See Answer

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