2. EFFERVESCENT TABLET DIVISION (ETD)

This division operates a process costing system in the manufacturing of the citrus performance effervescent tablets (Bazooka). ETD values all types of inventories using the weighted average costing method. The ETD management team receives a performance-related bonus if their division achieves a return on investment (ROI) of 12% or above for the particular financial year. The head office is considering incorporating other non-financial performance measures.

The ETD manufacturing process begins with mixing the direct raw materials (Vitamins, Citric Acid, Sodium Bicarbonate, Flavourants and Artificial sweeteners). The raw materials are mixed and undergo granulation to be compressed into tablets. The tablets are packaged into plastic tubes of 200 g each, which represents one unit of Bazooka. These units are packed in boxes for distribution to various retailers.

All the direct raw materials required to manufacture Bazooka are added at the beginning of the manufacturing process. Direct labour and manufacturing overheads are incurred evenly throughout the manufacturing processes.

One kg of the direct raw materials yields one kg of Bazooka. Normal losses in the form of broken and rejected tablets amount to 5% of the direct raw materials added. These broken and rejected tablets are identified at the 80% completion point of the manufacturing process.

2.1. Actual information for the month of December 2022 was as follows:

2.1.1 On 30 November 2022, there was 3 000 kg of work in process (WIP) which was 90% completed. The direct raw material costs included in this WIP were R262 000 and the direct labour and manufacturing overheads were R558 500.

2.1.2 16 tonnes of direct raw materials, costing R1,6 million were added into the process.

2.1.3 The current direct labour and manufacturing overheads totalled R1,35 million 2.1.4 60 000 units were completed in the month.

2.1.5 On 31 December 5 000 kg of the WIP were 75% completed.

Prepare ETDs actual quantity statement for December 2022 Where applicable, round your workings to the nearest unit of measure