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QUESTION 3 (20 MARKS 36 MINUTES) OKALONGO NUTRITIONAL Cc produces a high nutritional syrup ("THE SYRUP") made out of bees' honey THE SYRUP is manufactured in a single production process. Before it was introduced about two years ago, a thorough market research was conducted mainly to ascertain its specific market segment. Thus, it was found through such a market research that THE SYRUP is quite useful to the elderly people as it helps lower high blood pressure, cholesterol and any heart related diseases. The following information relates to the month of September 2019, Detalls Units N$ Work in progress - 31 August 2019 500 Materials (100% complete) 28 000 Conversion (80% complete) 33 400 Costs incurred during September 2019: Direct materials 2 500 30 000 Conversion 20 960 Units completed and transferred out 2 400 Work in progress - 30 September 2019 400 200 Additional Information: All ingredients required in making THE SYRUP are added at the beginning of the process. Conversion takes place evenly during the process. The raw honey is sourced from the local community. Normal loss is estimated at 5% of units that reach the inspection point, and inspection only takes place when the process is 100% complete. Work-in progress on 30 September is 100% complete for material and 80% complete for conversion. The company employs the FIFO method in valuing its syrup. REQUIRED: Each question should be answered in its context. MARKS 3.1. Prepare a fully-fledged Production Cost Report for the month ended 30 September 2019. Clearly show all your workings by way of appropriate 17.5 schedules 3.2. Briefly explain how normal loss and abnormal loss should be presented in the annual financial statements. 2.5 TOTAL MARKS FOR QUESTION 3 20