lyceum college

Section A Question 1 Proces Costing [30 Marks] (30 Marks) Mark James Ltd manufactures a single product in a single process. Material is added at the beginning of the process and conversion costs are incurred uniformly during the month. Cost and manufacturing information for Sept 2012 are as follows: Work in progress - 1 Sept (40% completed) Put into production Completed and transferred Work in progress - 30 Sept (75% completed} Cost item Work in progress: Material Conversion Incurred during month: Material Units 6 000 34 000 23 200 7 000 Rand 85 000 (oeoe how Conversion Additional information: 54 000 738 808 240 150 The FIFO method is used for inventory valuation Normal wastage is 20% of input Wastage occurs when the process is 50% complete REQUIRED: (A Prepare the following statements for July 2011 - (Work to 3 decimal. places) a. Production quantity statement b. Cost statement Cost allocation statement (19 Marks) (5 Marks) (6 Marks)