7 (20 Marks) A manufacturing company operates two processes. Output from Process 1 is transferred as input to Process 2. Output from Process 2 is the finished product. Data for the two processes in January are as follows: Process 1 Opening work in process Nil Units introduced into the process 14,000 Units completed and transferred to the next process (Process 2) 10,000 Closing work-in-progress 4,000 Material cost added during the period R70,000 Conversion cost added during the period R48,000 Materials are input into Process 1 at the start of the process and conversion costs are incurred at a constant rate throughout processing. The closing work-in-progress in Process 1 at the end of January is estimated to be 50% complete for the conversion work. Process 2 Opening work-in-process Nil Units transferred into the process from Process 1 10,000 Closing work-in-progress 1,000 Units completed and transferred to finished goods inventory 9,000 Costs for the period: Cost of production transferred from Process 1 R90,000 Conversion cost added during the period R57,000 R36,000 Added materials during Process 2 The materials from Process 1 are introduced at the start of processing in Process 2, but the added materials are introduced at the end of the process. Conversion costs are incurred at a constant rate throughout processing. The closing work-in-progress in Process 2 at the end of January is estimated to be 50% complete. Required: Calculate: a) the cost of completed output from Process 1 and Process 2. b) ( the cost of the closing work-in-process in each process at the end of January. Prepare the Process 1 account and the Process 2 account for January