Fresh Air Sdn Bhd manufactures vanilla bouquet air freshener through two consecutive

processes $M$ & N$.$ It applies process costing principles in determining its costs. It is the

company's policy to value any incomplete units using First In First Out $($FIFO$)$ method.

The data below relates to Process $N$ for the month of May $2022$:

Transfer from Process M

Additional material cost

Conversion cost

Actual output

$14,000$ kgs @ RM$4\mathrm{.}00$ per unit

$RM38,875$

RM$48,150$

$13,500kg$

Analysis of work in process:

Expected losses of $800kg$ to be incurred at the end of the process. Losses can be sold

at a scrap value of RM$1\mathrm{.}50$ per $kg.$

Required:

Prepare Process $N$ account and the following statements:

i$.$ Statement of Equivalent Units

ii$.$ Statement of Costs

iii. Statement of Evaluation