Blister Ltd manufactures a single product in one process and uses a process costing system. The following information is available for May 2010:

	$	Units
Work in process - 01 May 2010	-	-
Units placed into process during May		47,500
Units completed		35,000
Costs for the month: Material	356,250
: Conversion Costs	276,000
Work in process - 31 May 2010		2,500
Percentage complete:
Material - 100%
Conversion costs - 40%

Additional information:

a) Raw material is added at the beginning of the process. Conversion costs are incurred evenly throughout the process.

b) Normal wastage is estimated at 10% of input that reach the point of wastage.

c) Losses occur at the end of the process.

d) Inventory is valued according to the weighted average method.

Required:

1. Prepare the following statements for May 2010:

1.1 Production statement

1.2 Production cost statement

2. Calculate the cost of normal loss