Double Filter Sdn Bhd $($DFSB$)$ manufactures cooking oil from oil palm $.$ In January $2022,$ the company had the following activities:

Beginning work in process inventory $...9,000$ items, $1/4$ complete with regards to conversion costs

Units placed in production $...............30,000$ units

Units completed $............................35,000$ units

Ending work in process inventory $.......4,000$ items, $3/4$ complete with regards to conversion costs

Cost of beginning work in process $......$ RM$10,500$

Direct material costs, current $.............$ RM$33,000$

Conversion costs, current $.................$ RM$47,890$

Direct materials are placed into production at the beginning of the process and conversion costs are incurred evenly throughout the process.

REQUIRED:

$1.$Prepare a production cost report using the First In First Out $($FIFO$)$ method of process costing for DFSB$.$ Show all calculations.

$2.$ DFSB is currently using FIFO process costing for tracking the costs of its manufacturing activities. However, in recent months, the system has become somewhat overloaded with details. It seems that, when the company purchased Palma Sdn Bhd $($PSB$)$ in April $2022,$ its product lines increased six$-$fold. This has caused both the accountant and the line manager to face great difficulty in keeping the costs of each product line separately. Likewise, the estimation of the completion of ending work$-$in$-$process inventories and the associated costs has become very cumbersome.

Therefore, the chief financial officer of the company is looking for ways to improve the reporting system of product costs. In the coming executive meeting, you as the production manager of DFSB are required to:

i Give ONE $(1)$ recommendation on how to improve the situation faced by DFSB$.$

i Provide your justification for the above recommendation