Question 1 Lokal Food Manufacturer produces the "Fresh" brand ofpasteurised coconut milk from one of its manufacturing processes. The following information of process inputs, outputs and work in process relates to the month of September 2018 _ Opening work in process Raw materials input Output completed Closing work in process kg 26,700 110,600 98,400 29,200 The opening and closing work in process are respectively 30 per cent and 60 per cent complete as to conversion costs. Raw materials are added at the beginning of the manufacturing process. However, conversion costs are incurred evenly throughout the manufacturing process Spoilages are assumed to occur at the stage of completion where inspection takes place and these spoilages can be sold to a bio-fuel company at an estimated disposal value $0.25 per kg. Inspection takes place when the products are 90% complete. The opening work in process included raw material costs of $60,920 and conversion costs of $35,597. Costs incumed during the period were: Raw material input Conversion costs $276,500 $373,248 The company uses FIFO method of process costing and assumes that the normal spoilage are 8 per cent of the good units produced